Wartrace Citys Communications Enterprise Fund, which has a December 31 year end, was awarded a ...

Wartrace Citys Communications Enterprise Fund, which has a December 31 year end, was awarded a $400,000 federal grant for a system hardware upgrade to meet FCC requirements. The grant was awarded in June 20X7. Work began immediately on the project and qualifying costs of $200,000 were incurred prior to December 31, 20X7, however, the capital project is not expected to be completed until June 20X8. The grantor does not reimburse grantees until a project is complete. As of December 31, 20X7, the Communications Enterprise Fund should
A.Report nonoperating revenues of $400,000.
B.Report nonoperating revenues of $200,000.
C.Report a capital contribution of $400,000.
D.Report a capital contribution of $200,000.