2. Capital City was awarded a $3,000,000 grant from the state. Of this grant, $1,500,000 was sent to the city and recorded in a special revenue fund. Qualified expenditures of that fund totaled $900,000 in the year that the grant was received. What amount of revenues should the city recognize with respect to the grant?

a $0 b $900,000 c $1,500,000 d $3,000,000 Accounting for State and Local Governmental Units—Governmental Funds 701