Question

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? $182,000 $418,000 $582,000 $600,000

Answer 1

Answer:

correct option is a) $182,000

Explanation:

given data

federal expenditure = $1,000,000

advanced the city =  $600,000

city incurred qualifying expenditures = $418,000

solution

we get here Ruth recognize as unearned revenue for its fiscal year ending that is express as

Amount to be recognized unearned revenue = advanced the city  - city incurred qualifying expenditures   .......................1

put here value

Amount to be recognized unearned revenue = $600,000-$418,000

Amount to be recognized unearned revenue = $182,000

so correct option is a) $182,000