The Lewiston School District receives a $200,000 grant from the Bates Foundation to upgrade its high school computer labs. Total cost of the upgrade is estimated at $450,000. Because the grant is restricted, it accounts for the grant in a special revenue fund. During the year the district incurs $225,000 in upgrade costs, paying for them out of general revenues. Can the district continue to report the $200,000 received from the foundation as restricted resources?
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