CPA · Question 31 · Area III: State & Local Governments
A city government levies $2,000,000 in property taxes for the fiscal year ending December 31. $1,800,000 is collected during the year. $100,000 is collected in January of the following year. The remaining $100,000 is expected to be collected in June of the following year. Under the modified accrual basis, what amount of property tax revenue should be recognized for the fiscal year?
Answer options:
$2,000,000
$1,800,000
$1,900,000
$1,950,000
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