Answered

Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

A city that has a 12/31 fiscal year end has adopted a policy of recognizing property tax revenue consistent with the 60-day rule allowable period under GAAP. Property taxes of $600,000 (of which none are estimated to be uncollectible) are levied in October 2013 to finance the activities of fiscal year 2014. Property taxes are due in two installments June 20 and December 20. Cash collections related to property taxes are as follows:
1/15/14 for property taxes levied in 2012, due in 2013 $ 25,000
2/15/14 for property taxes levied in 2012, due in 2013 $ 15,000
3/15/14 for property taxes levied in 2012, due in 2013 $ 10,000
6/20/14 First installment of taxes levied in 2013, due 6/20/14 $350,000
12/20/14 Second installment of taxes levied in 2013, due 12/20/14 $150,000
1/15/15 for property taxes levied in 2013, due in 2014 $ 15,000
2/15/15 for property taxes levied in 20130, due in 2014 $ 10,000
3/15/15 for property taxes levied in 2013, due in 2014 $ 5,000
The total amount of property tax revenue that should be recognized in the governmental fund financial statements in 2014 is:
a. $600,000.
b. $575,000.
c. $535,000.
d. $525,000.

Sagot :

Answer:

c. $535,000.

Explanation:

The computation of the total amount of property tax revenue is shown below:

= Property tax levied + first installment + second installment + property tax levied + property tax levied

= $10,000 + $350,000 + $150,000 + $15,000 + $10,000

= $535,000

hence, the total amount of property tax revenue is $535,000

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.