QUESTION #$4(9$ Marks, $22112$ minutes$)$

Research Incorporated $($RI$)$ received the following two types of government assistance on January $1,2011.$

RI built a new manufacturing facility that cost $$5$ million dollars. They received government assistance of $$1$ million towards the cost of the manufacturing facility. The building will be amortized on a straight line basis

over $25$ years.

RI received a $$4$ million grant to help fund the research of a new cancer drug over the next two years.

Required:

Explain the alternatives available for these two types of government assistance.

What would be the impact of the readers of the financial statements of any alternatives for these two types of government assistance?

Provide all relevant journal entries for all alternatives required for $2011$ for both types of government assistance.