A city levies property taxes of $4 billion in June 20Xl for its fiscal year beginning July 1, 20Xl. The taxes are due by January 31, 20X2. The following (in millions) indicates actual and anticipated cash collections relating to the levy:

June 20Xl................................................................$100
July 20Xl through June 20X2.............................$3,600
July 20X2 through August 20X2............................$80
September 20X2 through June 20X3.................$150

The city estimates that $30 million will eventually have to be refunded, owing to taxpayer appeals of the assessed valuation of their property, and that $70 million will be uncollectible.
1. Prepare a journal entry that summarizes the city's property tax activity for the fiscal year ending June 30, 20X3, based on:
a. The modified accrual basis (i.e., for fund statements)
b. The full accrual basis (i.e., for government-wide statements)
2. Indicate the differences in amounts that would be reported on both the statement of net position and the statement of activities on a full accrual basis.
3. Suppose that in the following year the tax levy and pattern of collections were identical to those of the previous year. What would now be the difference in amounts reported on the statement of net position and the statement of activities on a full accrual basis?