[agripper]

I didn’t understand answer to MCQ $800,000

The Town of Starbuck’s general fund received a notice of a federal grant award for an expenditure-driven (reimbursement) grant in the amount of $2,000,000. Included with the notice was an advance of $1,000,000. During the year, the Town incurred $1,400,000 of program expenditures of which $800,000 were considered eligible qualifying expenditures. No additional money had been received from the grantor during the year.

What would be the amount of revenues reported at the entity-wide level?

A.

 

$800,000

Incorrect

B.

 

$1,000,000

C.

 

$1,400,000

D.

 

$2,000,000