The Following Data Applies to the Next Three Questions

question 4

Multiple Choice

The following data applies to the next three questions:
The City of Charlestown levied property taxes in the amount of $9,000,000. It is estimated that 2% will not be collected. The taxes were levied July 1, 2013 for the fiscal year ended June 30, 2014. During the year ended June 30, 2014, $7,900,000 in property taxes were collected from this levy. It is estimated that $620,000 will be collected during the next 60 days, $300,000 will be collected more than 60 days after June 30, 2014, and $180,000 will never be collected.
-How much will the city report as Deferred Property Taxes in its June 30,2014 government-wide Statement of Net Assets?

• A) $ 620,000.
• B) $ 320,000.
• C) $ 300,000.
• D) $ 0.

---

Definitions:

Fee Simple Absolute

A type of freehold ownership where the owner has the greatest possible aggregation of rights, privileges, and power over a piece of property.

Ownership Interest

This denotes the rights and claims an individual or entity has over a property or investment.

Real Property

Land, and generally whatever is erected or growing upon or affixed to land, including buildings and crops.

Apartment House

A residential building containing multiple apartment units owned by an individual or company, often rented to tenants.