Last Year a City Received Notice of a $150,000 Grant

Multiple Choice

Last year a city received notice of a $150,000 grant from the state to purchase vehicles to transport physically challenged individuals. During the current year the city received the entire $150,000, purchased a bus for $65,000, and issued a purchase order for a van for $60,000. The grant revenue that the city should recognize on the government-wide financial statements in the current year is

A) $-0-.
B) $ 65,000.
C) $125,000.
D) $150,000.