The City of Casper levied property taxes for 2017 in the amount of $9,000,000. By the end of the year, $7,200,000 had been collected. It was estimated that $500,000 would be collected during the next 60 days of 2017 and that $240,000 would be collected after that and the remainder would be uncollectible. The City has a policy of recognizing the full amount possible for property taxes. Which of the following statements is true?

Question

Quizplus · Accepted Answer

The property tax revenue would be $9,000,000 on the government-wide statements because it uses accrual accounting and revenues are recognized in the period for which the taxes are levied. The property tax revenue in the governmental fund would be the amount of the levy of $9,000,000 - $240,000 the amount expected to be collected more than 60 days after year end. Revenues expected to be collected more than 60 days after year end are reported as deferred inflows of resources.

The City of Casper Levied Property Taxes for 2017 in the Amount