A City Receives Notice of a $150,000 Grant from the State

Multiple Choice

A city receives notice of a $150,000 grant from the state to purchase vans to transport physically challenged individuals. Although the city did not receive any of the grant funds during the current year, the city 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 in the government-wide financial statements in the current year is

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