In 2017, a public university was awarded a federal reimbursement grant of $18 million to carry out research. Of this, $12 million was intended to cover direct costs and $6 million to cover overhead. In a particular year, the university incurred $4 million in allowable direct costs and received $3.4 million from the federal government. It expected to incur the remaining costs and collect the remaining balance in 2018. For 2017 it should recognize revenues from the grant of Question 33 options: $3.4 million $4.0 million $6.0 million $18.0 million