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he City of Kingsport has recently won the bid to host the Olympic Games in eight years. The City will need to invest in a
he City of Kingsport has recently won the bid to host the Olympic Games in eight years. The City will need to invest in a stadium and other facilities in order to support this event, and the federal government has agreed to provide it with the financial assistance needed to get the project underway. The following amounts were provided by the City in October 20X6: a $5 million unsecured loan, repayable in 20X8, to cover the costs of preparing the bid a $30 million grant toward the acquisition of capital assets to be used in the stadium-construction process; the assets, purchased on December 31, 20X6, will be depreciated over 25 years a $25 million grant toward miscellaneous startup costs Miscellaneous startup costs in 20X6-20X7 included site preparation and other preliminary activities, which cost the City $15 million in 20X6-X7. How should the $60 million received from the federal government be reflected in the City's 20X6-20X7 financial statements? Liabilities of $60 million Liabilities of $15 million, revenue of $45 million Liabilities of $45 million, revenue of $15 million Liabilities of $5 million, revenue of $55 million
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