A City Receives a $150,000 Grant from the State to Purchase

Multiple Choice

A city receives a $150,000 grant from the state to purchase vans to transport physically challenged individuals.During the current year the city receives the entire $150,000 and purchases one bus for $65,000 and issues a purchase order for another 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.