The City of Charlotte reported property tax revenues in 2014 in the amount of $10 million.The deferred property taxes reported in the General Fund's balance sheet was $ 300,000 on December 31,2013 and was $ 375,000 on December 31,2014.During 2014,$9,000,000 was collected.What amount should the city report for Property Tax Revenue in its year ended December 31,2014 government-wide Statement of Activities?

Question

Quizplus · Accepted Answer

The property tax revenue reported in the government-wide Statement of Activities should include the amount collected during the year plus any changes in deferred property taxes. In this case, the amount collected during 2014 was $9,000,000 and there was an increase in deferred property taxes of $75,000 ($375,000 - $300,000). Therefore, the total property tax revenue reported should be $9,075,000 + $1,000,000 (the original amount reported in 2014) = $10,075,000. The correct answer is C.

The City of Charlotte Reported Property Tax Revenues in 2014