Sunwapta Falls Co$.($SFC$),$ a company that reports under ASPE, received a forgivable loan from the federal government in Year $1.$ The loan of $$300,000$ is forgivable provided that SFC employs $10$ new people under the age of $30$ each year for Year $1$ through Year $4.$

Which of the following best describes how SFC should account for this forgivable loan?

SFC should recognize $$300,000$ in income in Year $1$ if it employs $10$ people under the age of $30$ each year.

SFC should recognize $$75,000$ each year in income from Year $1$ through Year $4.$

C

D

SFC should recognize $$75,000$ each year into income from Year $1$ through Year $4$ if it employs $10$ people under the age of $30$ each year.

SFC should recognize a $$300,000$ loan and repay $$75,000$ each year.