Case A On $27$ February $20$X$7,$ JJJ Inc. upgraded its windows and doors in order to make the building green$-$certified. The upgrades have a $20-$year useful life. JJJ will receive a $30\%$ rebate on total cost if it can demonstrate reduced utilities draw by $45\%$ over a $5-$year period. The funds are received up front, upon submission of the costs. A report is filed annually over the next $5$ years. Total amount spent on upgrades: $$4,860,000.$

Case B RBH Inc. was provided with a $$240,000$ forgivable loan to help offset increased sick pay that was mandated by the government. The loan is intended to provide relief for the first $2$ years of the program.

Required:

$1.$ Prepare the journal entries:

$1.$ Under both the net and the deferral method

$2.$ If it is netted against expenses or recorded as income

$($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$