1. An out of state online retailer sells merchandise to Illinois residents. This out of state retailer is required to collect 6.25% Illinois sales tax on these sales if the retailer has

1. $75,000 of sales in the State.
2. 250 sales transactions in the State.
3. A and B.
4. Neither A nor B.

2. You are auditing the Village of Fremont for the year ended December 31, 2021. During the course of the audit, you noted that the Villages finance director recorded an entry in the general fund dated December 31, 2021, that debited prepaid assets and credited fund balancenonspendable for $4,000. You determined that this entry was correct. In the notes to the general fund balance sheet, what method of accounting for the Villages prepaid assets should be disclosed?

1. Consumption method.
2. Purchases method.
3. Procurement method.
4. Expenditure method.

3. The Village on Manchester's garbage trucks accidentally sideswiped two parked automobiles during the fiscal year ended December 31, 2021. One case was settled for $3,000 in 2021, and the Village expects to pay that claim in January, 2022. In the other case, the claimant originally demanded $15,000. The Village attorney thinks that it is probable that the Village can settle the claim for $10,000, but it will take approximately three to four months to settle the case. What amount should the Village report as a claims liability on the general fund's December 31, 2021, balance sheet?

1. $0.
2. $3,000.
3. $13,000.
4. $18,000