The general fund of the Town of Dean levied property taxes of $3,000,000 for the fiscal year beginning on January 1,2008.It was estimated that 1% of the levy would be uncollectible.During the period January 1,2008,through December 31,2008,$2,960,000 of the property tax levy was collected.At December 31,2008,Dean estimated that $10,000 of property taxes levied in 2008 would be collected during the first 60 days of 2009.What amount of property tax revenue should be reported by the general fund for the year ended December 31,2008?
A)$2,960,000
B)$3,000,000
C)$2,970,000
D)$2,990,000

Question

Quizplus · Accepted Answer

The estimated uncollectible amount is 1% of the levy, which is $30,000 (1% of $3,000,000). Therefore, the expected collectible amount is $2,970,000 ($3,000,000 - $30,000). During the fiscal year, $2,960,000 was collected, so the remaining expected amount to be collected is $10,000 ($2,970,000 - $2,960,000). This $10,000 should be included as revenue for the year ended December 31,2008. Therefore, the correct answer is $2,970,000.

The General Fund of the Town of Dean Levied Property