A government received 1 5 million grant for the restoration and expansion of a historic building. The grant is structured to reimburse project costs as they are incurred. The projects is expected to take five years to complete. During the first year of the project. The government buys an adjacent lot of land to be used for the expansion for 1 million and spends another 200,000 in repairs to the building itself

What amount of grant revenue will be reported in the first-year financial statements?

A 200,000

B 1 million

C 1.2 million

D 5 million