In 20X0, a government university was awarded a federal reimbursement grant of $9 million to carry out research. Of this, $6 million was intended to cover direct costs and $3 million to cover overhead. In a particular year, the university incurred $2 million in allowable direct costs and received $1.7 million from the federal government. It expected to incur the remaining costs and collect the remaining balance in 20Xl. For 20X0 it should recognize revenues from the grant of
a. $1. 7 million.
b. $2.0 million.
c. $3.0 million.
d. $9.0 million.