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Problem 1: In 2020 a private university's accounting department received a $400,000 federal grant to carry out research in government budgeting. Of this amount, $280,000 was to cover faculty salaries and $120,000 was to cover overhead.During 2020 the department began the research and paid faculty members $75,000. It was reimbursed by the federal government for $95,000. How much revenue is recognized this year?
Option 1: $300,000Option 2: $45,000Option 3: $75,000Option 4: $95,000
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