In 2014,a public university was awarded a federal reimbursement grant of $18 million to carry out research.Of this,$12 million was intended to cover direct costs and $6 million to cover overhead.In a particular year,the university incurred $4 million in allowable direct costs and received $3.4 million from the federal government.It expected to incur the remaining costs and collect the remaining balance in 2015.For 2014 it should recognize revenues from the grant of
A)$3.4 million
B)$4.0 million
C)$6.0 million
D)$18.0 million

Question

Quizplus · Accepted Answer

The Answer of In 2014,a public university was awarded a federal reimbursement grant of $18 million to carry out research.Of this,$12 million was intended to cover direct costs and $6 million to cover overhead.In a particular year,the university incurred $4 million in allowable direct costs and received $3.4 million from the federal government.It expected to incur the remaining costs and collect the remaining balance in 2015.For 2014 it should recognize revenues from the grant of
A)$3.4 million
B)$4.0 million
C)$6.0 million
D)$18.0 million

In 2014,a Public University Was Awarded a Federal Reimbursement Grant