A Government Was Billed $3,000,000 During the Year on Its

Multiple Choice

A government was billed $3,000,000 during the year on its capital project, of which $2,700,000 was paid. The total contracted cost is $5,200,000. The government does not plan to pay the $300,000 balance currently owed to the contractor until the project has been completed and approved. The government should report Capital Projects Fund expenditures for the current year equal to

A) $2,700,000.
B) $3,000,000.
C) $4,900,000.
D) $5,200,000.