Question

During the current year, Knoxx County levied property taxes of $2,000,000, of which 1% is expected to be uncollectible. The following amounts were collected during the current year: Prior year taxes collected within the first 60 days of the current year $ 50,000 Prior year taxes collected between 60 and 90 days into the current year 120,000 Current year taxes collected in the current year 1,800,000 Current year taxes collected within the first 60 days of the subsequent year 80,000 What amount of property tax revenue should Knoxx County report in its government-wide statement of activities?

Answer 1

The expected amount for example is $2,000 ($200,000 * 1 %) should be removed from the revenue & the actual revenue adjusted of $1,980,000 ($200,000 - $2,000) should be provided

Step-by-step explanation:

From the question given we recall the following statements.

Knoxx County levied property taxes of = $2,000,000

The expected to be uncollectible =1 %

The year prior taxes collected within the first 60 days of the current year= $ 50,000

The year prior taxes collected between 60 and 90 days into the current year = 120,000

The year taxes collected in the current year = 1,800,000

The taxes of the current year collected within the first 60 days of the subsequent year = 80,000

The next step is to know amount of property tax revenue should Knoxx County report in its government-wide statement of activities

Now,

As for the GASB, wide statements are to be reported and by applying the accrual basis.Thus the noncollectable expected amount for example is $2,000 ($200,000 * 1 %) should be removed from the revenue & the actual revenue adjusted of $1,980,000 ($200,000 - $2,000) should be provided In deciding property tax revenue the collection during the year is not important.