A City That Has Property Taxes of $720,000 (Of Which

question 42

Multiple Choice

A city that has property taxes of $720,000 (of which 10 percent are estimated to be uncollectible) which are levied in October 2016 to finance the activities of the fiscal year 2017. During 2017, cash collections related to property taxes levied in October 2016 were $600,000. In 2018 the following amounts related to the property taxes levied in October 2016 were collected: January $30,000; March, $6,000. For the fiscal year ended 12/31/17, what amount should be recognized as property tax revenues related to the 2016 levy on the governmental fund financial statements?

• A) $720,000.
• B) $648,000.
• C) $630,000.
• D) $600,000.