E 20-6 Multiple choice [AICPA adapted] 1. The following information pertains to Walnut Corners: 2016 governmental fund revenues that became measurable and available in time to be used for payment of 2016 liabilities Revenues earned in 2014 and 2015 and included in the $16,000,000 indicated Sales taxes collected by merchants in 2016 but not required to be remitted to Walnut Corners until January 2017 For the year ended December 31, 2016, Walnut Corners should recognize revenues of: a $14,000,000 b $16,000,000 C $17,000,000 d $19,000,000 $16,000,000 2,000,000 3,000,000 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