The City of Ruth has been awarded a $1,000,000 federal reimbursement grant to improve bike trails. The city has incurred $418,000 of qualifying expenditures during the current year, for which the federal government has reimbursed the city $180,000. How much should the city of Ruth recognize as revenue for the current year?

Question

Quizplus · Accepted Answer

The city should recognize revenue equal to the qualifying expenditures incurred, which is $418,000, regardless of the amount reimbursed so far.

The City of Ruth Has Been Awarded a $1,000,000 Federal