The City of Wagner is awarded a state grant for its police department to educate school children

on the dangers of illicit drug use. The grant is for $30,000 and is intended to pay for half of a

police officers salary for Wagners current fiscal year. Wagner must pay the officers salary before

being reimbursed by the state for one-half of the salary that Wagner pays. The City of Wagner

pays $15,000 for the police officer salary in the first quarter of the year and bills the state. Which

account and amount is credited by Wagner to record the billing to the state?

a. Due from state government for $15,000

b. Deferred inflows of resourcesgrant for $7,500

c. Intergovernmental revenuesgrants for $7,500

d. Due from state government for $7,500