E 20-6 Multiple choice [AICPA adapted]

1. The following information pertains to Walnut Corners:

2016 governmental fund revenues that became measurable and available in time to be used for payment of 2016 liabilities

$16,000,000 Revenues earned in 2014 and 2015 and included in the

$16,000,000 indicated 2,000,000 Sales taxes collected by merchants in 2016 but not required to be remitted to Walnut Corners until January 2017 3,000,000 For the year ended December 31, 2016, Walnut Corners should recognize revenues of:

a $14,000,000 b $16,000,000 c $17,000,000 d $19,000,000