Sister City Was Notified by the State That It Has

Sister City was notified by the state that it has been awarded a $5 million grant to aid in the construction of a senior citizens center. At the time of the notification what is the appropriate entry in the capital projects fund? Assume that the city has met all eligibility requirements and maintains its books and records in a manner to facilitate the preparation of fund financial statements.

A) No entry at the time of the notification.
B) Debit Grants receivable $5 million; Credit Revenue $5 million.
C) Debit Grants receivable $5 million; Credit Deferred inflow of resources $5 million.
D) Debit Grants receivable $5 million; credit Other financing sources-nonreciprocal transfer-in $5 million.