In 2017, a public university was awarded a federal reimbursement grant of $18 million to carry out research.Of this, $12 million was intended to cover direct costs and $6 million to cover overhead.In a particular year, the university incurred $4 million in allowable direct costs and received $3.4 million from the federal government.It expected to incur the remaining costs and collect the remaining balance in 2018.For 2017 it should recognize revenues from the grant of
A)$3.4 million
B)$4.0 million
C)$6.0 million
D)$18.0 million

Question

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The Answer of In 2017, a public university was awarded a federal reimbursement grant of $18 million to carry out research.Of this, $12 million was intended to cover direct costs and $6 million to cover overhead.In a particular year, the university incurred $4 million in allowable direct costs and received $3.4 million from the federal government.It expected to incur the remaining costs and collect the remaining balance in 2018.For 2017 it should recognize revenues from the grant of
A)$3.4 million
B)$4.0 million
C)$6.0 million
D)$18.0 million

In 2017, a Public University Was Awarded a Federal Reimbursement