The City of Casper Levied Property Taxes for 2017 in the Amount

question 3

Multiple Choice

The City of Casper levied property taxes for 2017 in the amount of $9,000,000. By the end of the year, $7,200,000 had been collected. It was estimated that $500,000 would be collected during the next 60 days of 2017 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?

• A) The amount reported for property tax revenue in the government-wide Statement of Activities would be $7,700,000.
• B) The amount reported for property tax revenue in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances would be $7,940,000.
• C) Both A and B.
• D) None of the above.

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Definitions:

Complements

Goods or services that are used together, such that the increase in demand for one results in an increase in demand for the other.

Bacon and Eggs

A popular breakfast dish in various cultures consisting of fried bacon and eggs.

Cross-Price Elasticity

A measure used in economics to show how the quantity demanded of one good changes in response to a change in the price of another good.

Inferior Goods

Goods for which demand decreases as the income of the consumer increases, opposite to normal goods.