Question
In year 1 a county makes the decision to assist a school district by giving it 1 million to be used in year 2. The
In year 1 a county makes the decision to assist a school district by giving it 1 million to be used in year 2. The funds are transferred to the school district in two installment of 500,000. The first installment is transferred in December year 1 The Second installment is transferred in January. Year 2
How should the school district recognize these funds received in its December 31, year 1 financial statements?
A Deffered inflow of resources of 500,000
B Deferred inflow of resources of 1 million
C Grant revenue of 500,000
D Grant revenue of 1 million
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