State of Denial has enacted a $69,$ and City of Angels a $1\%,$ sales tax. Businesses that collect sales taxes must transfer all

collections to State within $30$ days after the end of the month. State must transfer collected taxes to local governments

within $90$ days after the end of the month. City and State account for sales taxes in the general fund, and each has a

December $31$ fiscal year end. Sales subject to sales taxes in City were $$5,000,000$ in December and $$3,000,000$ in January. At

year$-$end, City and State should recognize