Question
Only July 1, Year 1, Owl County issued real estate tax assessments for its fiscal year ended June 30, Year 2. On September 1, Year
Only July 1, Year 1, Owl County issued real estate tax assessments for its fiscal year ended June 30, Year 2. On September 1, Year 1, Fox Co. purchased a warehouse in Owl County. The purchase price was reduced by a credit for accrued realty taxes. Fox did not record the entire year real estate tax obligation but instead records tax expenses at the end of each month by adjusting prepaid real estate taxes or real estate taxes payable, as appropriate. On November 1, Year 1, Fox paid the first of two equal installments of $24,000 for real estate taxes. What amount of this payment should Fox record as a debit to real estate taxes payable?
$24,000
$20,000
$8,000
$16,000
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