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During the current year, businesses in a county collect $2,000,000 in sales taxes from customers. These taxes are remitted to the county. Sales taxes are shared between the county, the towns located within the county, and the state, with 60% retained by the county for general use and reported in the general fund, 30% transmitted to the state, and 10% distributed to the towns. By year-end, the county had distributed $580,000 of sales taxes due to the state and $195,000 of sales taxes due to the towns. The county expects to collect the same amount of sales taxes in the following year.
-On the custodial fund's statement of net position at year-end, what are total assets?

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The total assets in the custodial fund's statement of net position at year-end would be $25,000. This is calculated by considering the amounts overpaid to the state and towns. The county was supposed to send 30% of $2,000,000 ($600,000) to the state but sent $580,000, resulting in an overpayment of $20,000. Similarly, it was supposed to distribute 10% of $2,000,000 ($200,000) to the towns but distributed $195,000, leading to an overpayment of $5,000. The sum of these overpayments is $25,000, which would be the total assets in the custodial fund.

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