A city assesses property owners $50 million to extend sewer lines to their neighborhood. By year‐end, however, it has not begun construction of the new lines and has not collected any of the assessments. It accounts for its wastewater services in an enterprise fund. In its year‐end enterprise fund financial statements, the government should
a. Recognize the assessments as assessments receivable and a deferred inflow of resources
b. Recognize the assessments as assessments receivable and revenue
c. Recognize the assessments as assessments receivable and a liability for future construction costs
d. Not recognize the assessments until they will be available for expenditure
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