A City That Has a 12/31 Fiscal Year End Has

question 3

Multiple Choice

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: $\begin{array}{rll}1 / 15 / 14 & \text { for property taxes levied in } 2012 \text {, due in } 2013 & \$ 25,000 \\2 / 15 / 14 & \text { for property taxes levied in } 2012 \text {, due in } 2013 & \$ 15,000 \\3 / 15 / 14 & \text { for property taxes levied in 2012, due in } 2013 & \$ 10,000 \\6 / 20 / 12 & \text { First installment of taxes levied in } 2013, \text { due } 6 / 20 / 14 & \$ 350,000 \\12 / 20 / 14 & \text { Second installment of taxes levied in } 2013 \text {, due } 12 / 20 / 14 & \$ 150,000 \\1 / 15 / 15 & \text { for property taxes levied in 201, due in } 2014 & \$ 15,000 \\2 / 15 / 15 & \text { for property taxes levied in } 2013 \text {, due in } 2014 & \$ 10,000 \\3 / 15 / 12 & \text { for property taxes levied in } 2013 \text {, due in } 2014 & \$ 5,000\end{array}$ The total amount of property tax revenue that will be recognized in the government-wide financial statements in 2014 is:

• A)$600,000.
• B)$575,000.
• C)$535,000.
• D)$525,000.