Benton County includes an independent school district and two individually chartered towns within the County. Benton County's Treasurer assesses and collects property taxes on behalf of itself, the school district, and the towns. The County uses a tax collection custodial fund to record tax collections for the school district and towns. During the year ended December 31, 2020, the following transactions took place:

1). The County Levied taxes as follows

Benton County General Fund $25,000,000

School District $12,500,000

Towns $2,500,000

Total $40,000,000

2). The property taxes levied in part (a) were collected.

3). The amounts collected were paid to the school district and towns.

Required:

a). Prepare journal entries for Benton County and the Benton County Independent School District--identify the funds.

b). Will tax collection funds typically report a non-zero net position? Explain.

c). Are there other custodial funds that typically repost a positive net position? Give an example