For each of the following situations, indicate the amount of revenue that the government should recognize in an appropriate governmental fund as well as in its government-wide statement of activities in its fiscal year ending December 31, 2015. Briefly justify your response, making certain that, as appropriate, you identify the key issue of concern.

1. In October 2014 a state received a federal grant of $300 million (in cash) to assist local law enforcement efforts. The federal government has established specific criteria governing how the funds should be distributed, and will monitor the funds to ensure that they are used in accordance with grant provisions. The grant is intended to cover any allowable expenditure incurred in the calendar years 2015 through 2015. In 2015 the state incurred $160 million of allowable expenditures.

2. On October 15, 2015, the Pleasant Valley School District invested $1 million in three-year, 6 percent U.S. Treasury notes. The district intends to hold the notes to maturity. The notes will pay interest ($30,000) on April 15 and October 15. On December 31, 2015, the market value of the notes was $1,012,000.

3. In December 2014 a city levied property taxes of $500 million for the calendar year 2015. The taxes are due June 30, 2015. The city collects the taxes as follows:
December 2014 ..................... $ 30 million
January 1, 2015 to December 31, 2015 ........... $440 million
January 1, 2016 through March 31, 2016 ($8 million per month) . $ 24 million
Total ......................... $494 million
It estimates the balance will be uncollectible.

4. In January 2015 a city received a cash gift of $1 million to support its museum of city history. Per the wishes of the donor the funds are to be invested and only the income may be expended. In 2015, the endowment generated $50,000 in income, none of which was spent during the year.

5. For the year 2015 the teachers of the Nuvorich School District earned $26 million in pension benefits. In January 2016, the state in which the district is located paid the entire amount into the State Teachers Retirement Fund.