Steuben County anticipates appropriations of ($10,500,000) and revenue from the state and other sources of ($900,000.) During

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Steuben County anticipates appropriations of \($10,500,000\) and revenue from the state and other sources of \($900,000.\) During the last fiscal year, the tax rate was \($0.85\) per \($100\) of assessed valuation, applied to property assessed at \($1,000\) million. Uncollectible property taxes are negligible. In the current year, the county's reassessment program increased the aggregate assessed value of property to \($1,050\) million. 

Required

a. Compute the property tax revenue raised during the last fiscal year.

b. Compute the tax rate needed to balance the current budget.

c. Assume that the Steuben County charter requires a balanced budget and that increasing the tax rate is politically unacceptable. Compute the maximum amount of appropriations that can be funded by property taxes given the increase in assessed valuation.

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Advanced Accounting

ISBN: 978-1618531513

3rd Edition

Authors: Susan S. Hamlen

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