The City of Casper levied property taxes for 2024 in the amount of $9,000,000. By the end of the year, $8,260,000 had been collected. It was estimated that $500,000 would be collected during the next 60 days of 2024 and that $240,000 would be collected after that and the remainder would be uncollectible. The City has a policy of recognizing the full amount possible for property taxes. Which of the following statements is true?

The City of Casper levied property taxes for 2024 in the amount of $9,000,000. By the end of the year, $8,260,000 had been collected. It was estimated that $500,000 would be collected during the next 60 days of 2024 and that $240,000 would be collected after that and the remainder would be uncollectible. The City has a policy of recognizing the full amount possible for property taxes. Which of the following statements is true?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 7P

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Property tax adjustments for government-wide financial statements When Oscar City prepared its governmental fund balance sheet for the year ended December 31, 2021, the General Fund column contained the following balances: Property taxes receivable-delinquent $27,000 Allowance for uncollectible taxes $3,000 Deferred inflows of resources -unavailable property taxes $7,500 During 2022, Oscar collected $24,000 of the delinquent taxes and wrote off the balance to the allowance account. Oscar levied real property taxes in the amount of $2,025,000 to finance its General Fund budget for the calendar year 2022. During the year, Oscar collected $1,920,000 against this levy. With regard to the remaining $105,000, Oscar expected to collect $70,500 during the first 2 months of calendar year 2023 and $30,000 later in the year between March and August 2023. Oscar wrote off $4,500 as uncollectible. Using the above information, calculate the amount of property tax revenue that will be recognized: a)…
For its fiscal year ending December 31, 2020, Twin City levied $500 million in property taxes. It collected taxes applicable to fiscal 2020 as follows (in millions): December 15, 2019 $20M January 20, 2020 $440M February 2, 2021 $15M April 5, 2021 $25M For the fiscal year ending December 31, 2020, how much should Twin City recognize in property tax revenue (in millions) in its general fund? A. $455M. B. $440M. C. $500M. D. $475M.
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