The general principles of revenue recognition are the same for both governmental and government-wide statements. For each of the following situations, indicate the amount of revenue that the government should rec- ognize in an appropriate governmental fund as well as in its government-wide statement of activities in its fiscal year ending December 31, 2021. Briefly justify your response, making certain that, as appropriate, you identify the key issue of concern. 1. In October 2020, a state received a federal grant of $300 million (in cash) to assist local law enforce- ment efforts. The federal government has established specific criteria governing how the funds should be distributed and will monitor the funds to ensure that they are used in accordance with grant provi- sions. The grant is intended to cover any allowable expenditure incurred in the calendar years 2021 through 2022. In 2021, the state incurred $160 million of allowable expenditures. 2. In December 2020, a city levied property taxes of $500 million for the calendar year 2021. The taxes are due on June 30, 2021. The city collects the taxes as follows: December 2020 $30 million January 1, 2021, to December 31, 2021 $440 million January 1, 2022, through March 31, 2022 ($8 million per month) $24 million Total $494 million 3. It estimates the balance will be uncollectible. Problems 4. In January 2021, a city received a cash gift of $1 million to support its museum of city history. Per the wishes of the donor the funds are to be invested and only the income may be expended. In 2021, the endowment generated $50,000 in income, none of which was spent during the year. 5. For the year 2021, the teachers of the Nuvorich School District earned $26 million in pension benefits. In January 2022, the state in which the district is located paid the entire amount into the State Teachers Retirement Fund. The general principles of revenue recognition are the same for both governmental and government-wide statements. For each of the following situations, indicate the amount of revenue that the government should rec- ognize in an appropriate governmental fund as well as in its government-wide statement of activities in its fiscal year ending December 31, 2021. Briefly justify your response, making certain that, as appropriate, you identify the key issue of concern. 1. In October 2020, a state received a federal grant of $300 million (in cash) to assist local law enforce- ment efforts. The federal government has established specific criteria governing how the funds should be distributed and will monitor the funds to ensure that they are used in accordance with grant provi- sions. The grant is intended to cover any allowable expenditure incurred in the calendar years 2021 through 2022. In 2021, the state incurred $160 million of allowable expenditures. 2. In December 2020, a city levied property taxes of $500 million for the calendar year 2021. The taxes are due on June 30, 2021. The city collects the taxes as follows: December 2020 $30 million January 1, 2021, to December 31, 2021 $440 million January 1, 2022, through March 31, 2022 ($8 million per month) $24 million Total $494 million 3. It estimates the balance will be uncollectible. Problems 4. In January 2021, a city received a cash gift of $1 million to support its museum of city history. Per the wishes of the donor the funds are to be invested and only the income may be expended. In 2021, the endowment generated $50,000 in income, none of which was spent during the year. 5. For the year 2021, the teachers of the Nuvorich School District earned $26 million in pension benefits. In January 2022, the state in which the district is located paid the entire amount into the State Teachers Retirement Fund