Carroll City levies $214,000 of property taxes for its current fiscal year. One
ID: 2578552 • Letter: C
Question
Carroll City levies $214,000 of property taxes for its current fiscal year. One percent of the tax levy is expected to be uncollectible. The city collects $184,000 of its taxes during the year and another $32,000 during the first two months of the following year. In addition, the city collected $5,800 of prior year taxes during the first two months of the current fiscal year and another $3,400 during the remainder of the current fiscal year. What amount of property tax revenues should the city report in the government-wide financial statements for the current fiscal year?
Explanation / Answer
Amount of property tax revenues to be recognized = $214,000 x 99%
.................................................................................= $211,860
Hence the correct answer is Option B i.e. $211,860