Nonexchange revenues can be of four types.

The GASB has identified four classes of nonexchange revenues:

Derived tax

Imposed

Government mandated

Voluntary

For each of the following revenue transactions affecting a city, identify the class in which the revenue falls and

prepare an appropriate fund journal entry for the current year $(20$X$1)$ as necessary. Provide a brief explanation

of$,$ or justification for, your entry.

In December, the state in which the city is located announced that it would grant the city $$20$ million to bring

certain public facilities into compliance with the state's recently enacted disability$/$accessibility laws. As of

year$-$end, the city had not yet received the funds, and it had not yet expended any funds on the state$-$

mandated facility improvements.

The city imposes a $$100$ tax on each sale of real estate. The tax is collected by the title companies that

process the sales and must be forwarded to the city within $30$ days of the transaction. In December, there

were $600$ sales of real estate. As of year$-$end, the city had collected $$40,000$ of the $$60,000$ that it was

owed. It collected the balance in January.

In December, the state announced that the city's share of state assistance for the calendar year $20$X$2$

would be $$120$ million.

The city imposes a tax on all boats owned by residents. The tax is equal to $1$ percent of the assessed value

of a boat $($determined by the city, taking into account the boat's original cost and age$).$ The tax is payable on

the last day of the year prior to the year for which the tax is applicable. In $20$X$1,$ the city levied $$640,000$ of

$20$X$2$ boat taxes, of which it collected $$450,000.$

A local resident sends to the city a copy of her will in which she bequeaths $$3$ million to the city museum

upon her death.

The U$.$S$.$ Department of Justice announces that it will reimburse the city up to $$400,000$ for the purchase of

telecommunications equipment. As of year$-$end, the city had incurred only $$200,000$ in allowable

expenditures.

A resident donates $$10$ million in securities to the city to support a cultural center. Only the income from the

securities$,$ not the principal, can be spent.