My book doesn’t seem to contain the solution for the following question:
“A manufacturing entity receives a grant of $3m when it creates 50 jobs. 1.5m is payable when the figure is reached with the remaining 1.5m payable after three years should the 50 jobs still be in existence. At the end of year one, 50 jobs have been created and there is reasonable assurance that the employment levels will be maintained.”
what is the deferred income balance at the end of the first year?
Please advice the double entry for the first year and subsequent years.
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