Question

15. The tax agency fund of Eden County collected $1,400,000 for the Eden School District, $700,000 for the Village of Edenton, $840,000 for the Eden Park District, and $490,000 for Eden County. County General Fund employees handle the collections, and a 3 percent collection fee is charged all units except the county. How much revenue should be recognized by the General Fund as a result of these collection activities? A) $42,000 B) $63,000 C) $88,200

Answer 1

$88,200

Step-by-step explanation:

The computation of the revenue recognized by the General fund is shown below:

= (Eden county collected amount for the Eden School District + Eden county collected amount for the Village of Edenton + Eden county collected amount for the Eden Park district) × given percentage

= ($1,400,000 + $700,000 + $840,000) × 3%

= $2,940,000 × 3%

= $88,200

We simply applied the above formula