A city was awarded a $600,000 federal grant to help finance a bridge construction project that is expected to take two years to complete. The grant will be paid in two installments: (1) 60% (nonrefundable) at the beginning of the project in Year 1, and (2) 40% when the project is completeD. Capital Projects Fund revenue should be recognized in Year 1 in the amount ofA. $600,000
B. $360,000
C. $240,000
D. $0