Question

The City of Ruth has been awarded a $1,000,000 federal reimbursement grant to improvebike 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?A. $1,000,000.B. $598,000.C. $418,000.D. $180,000.

Answer 1

The answer is: $238,000

Step-by-step explanation:

The City of Ruth should recognize as revenue the difference between their incurred qualifying expenditures in improving bike trails and the federal government reimbursement.

Revenue = $418,000 - $180,000 = $238,000 due from the federal government.