Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For each of the following situations, indicate the amount of revenue that the government should recognize in an appropriate governmental fund as well as in

For each of the following situations, indicate the amount of revenue that the government should recognize in an appropriate governmental fund as well as in its government-wide statement of activities in its fiscal year ending December 31, 2021. Briefly justify your response, making certain that, as appropriate, you identify the key issue of concern.

1. In October 2020, a state received a federal grant of $300 million (in cash) to assist local law enforcement efforts. The federal government has established specific criteria governing how the funds should be distributed and will monitor the funds to ensure that they are used in accordance with grant provisions. The grant is intended to cover any allowable expenditure incurred in the calendar years 2021 through 2022. In 2021, the state incurred $160 million of allowable expenditures.

2. In December 2020, a city levied property taxes of $500 million for the calendar year 2021. The taxes are due on June 30, 2021. The city collects the taxes as follows:

December 2020 $30 million

January 1, 2021, to December 31, 2021 $440 million

January 1, 2022, through March 31, 2022 ($8 million per month) $24 million Total $494 million

3. It estimates the balance will be uncollectible.

(I've found 1 & 2 on this site already, but I REALLY need the answer for #3)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Basel III, The Devil And Global Banking

Authors: D. Chorafas

2nd Edition

0230353770, 9780230353770

More Books

Students also viewed these Accounting questions

Question

What is the effect of word war second?

Answered: 1 week ago