A city that has a 12/31 fiscal year end has adopted a policy of recognizing property tax revenue consistent with the 60-day rule allowable period under GAAP.  Property taxes of $600,000 (of which none are estimated to be uncollectible) are levied in October 2013 to finance the activities of fiscal year 2014.  Property taxes are due in two installments June 20 and December 20.  Cash collections related to property taxes are as follows:

• 1/15/14    for property taxes levied in 2012, due in 2013 $  25,000
• 2/15/14    for property taxes levied in 2012, due in 2013 $  15,000
• 3/15/14    for property taxes levied in 2012, due in 2013 $  10,000
• 6/20/14     First installment of taxes levied in 2013, due 6/20/14 $350,000
• 12/20/14    Second installment of taxes levied in 2013, due 12/20/14 $150,000
• 1/15/15    for property taxes levied in 2013, due in 2014 $  15,000
• 2/15/15    for property taxes levied in 20130, due in 2014 $  10,000
• 3/15/15     for property taxes levied in 2013, due in 2014 $    5,000

The total amount of property tax revenue that should be recognized in the governmental fund financial statements in 2014 is:

1. $600,000.
2. $575,000.
3. $535,000.
4. $525,000.