In 2016, Queens college, part of the City University of New York, was awarded a federal reimbursement grant of $10 million to carry out research. Of this, $8 million was intended to cover direct costs and $2 million to cover overhead. In 2016, QC incurred $4 million in allowable direct costs and received $2 million from the federal government. It expected to incur the remaining costs and collect the remaining balance in 2017. For 2016 it should recognize revenues from the grant of:

		$10 million
		$6 million
		$5 million
		$4 million