A City Receives a $200,000 Grant from the State to Purchase

Multiple Choice

A city receives a $200,000 grant from the state to purchase vans to transport physically challenged individuals.During the current year the city receives the entire $200,000 and purchases one bus for $85,000 and issues a purchase order for another van for $80,000.The grant revenue that the city should recognize on the government-wide financial statements in the current year is

A) $-0-.
B) $ 85,000.
C) $165,000.
D) $200,000.