The City of Ruth has been awarded a $1,000,000 federal expenditure-driven grant to improve bike trails. The federal government advanced the city $600,000 when the grant was awarded on January 10, 20X8. The city incurred $418,000 of qualifying expenditures during 20X8. How much should the city of Ruth recognize as unearned revenue for its fiscal year ending December 31, 20X8?

Question

Quizplus · Accepted Answer

The city received $600,000 in advance but only incurred $418,000 in qualifying expenditures. Therefore, the unearned revenue is the difference: $600,000 - $418,000 = $182,000.

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