Bevo County levies a property tax of $10 million. Of this amount, $6 million pertains to the activities of Bevo County's General Fund, while the other $4 million pertains to and will be remitted to the 10 villages within the County. The County anticipates that it will collect the entire $10 million that has been levied.
-If Bevo County prepares an Agency Fund statement of fiduciary net position before it collects the property taxes,how much should it report as property taxes receivable?

Question

Quizplus · Accepted Answer

The correct answer is $4 million because the Agency Fund is used to account for assets held by Bevo County in a trustee or agency capacity for others, which in this case includes the $4 million intended for the 10 villages within the County. The remaining $6 million pertains to the General Fund and is not reported in the Agency Fund.

Bevo County Levies a Property Tax of $10 Million