A city was awarded a $600,000 federal grant to help finance a bridge construction project that is expected to take two years to complete

The grant will be paid in two installments: (1) 60% (nonrefundable) at the beginning of the project in Year 1, and (2) 40% when the project is completed. Capital Projects Fund revenue should be recognized in Year 1 in the amount of
a. $0
b. $600,000
c. $300,000
d. $360,000
e. $240,000

D