A Capital Projects Fund received a $300,000 transfer from the General Fund and $200,000 of a $500,000 unrestricted state grant for a highway project. The grant is being paid in two phases-$200,000 in Year 1 and $300,000 when the project is completed (which is anticipated to be at the end of Year 2). Capital Projects Fund revenues reported at the end of Year 1 should be

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The Capital Projects Fund received a $300,000 transfer from the General Fund and $200,000 of the state grant in Year 1. Therefore, the total revenues for the Capital Projects Fund at the end of Year 1 would be $500,000. However, since the second phase of the grant ($300,000) will not be received until the end of Year 2, it cannot be recognized as revenue until that time. Therefore, the Capital Projects Fund revenues reported at the end of Year 1 would only include the $200,000 received from the state grant in Year 1, totaling $200,000.

A Capital Projects Fund Received a $300,000 Transfer from the General