A city provides a local business with a tax abatement so that real estate taxes will be avoided for the next five years. In exchange, the business agrees to construct a new facility to hire 50 or more individuals. How is this reported? Choose the correct.a. Only on the government-wide financial statements.b. Only on the fund financial statements.c. On both the government-wide and fund financial statements.d. Only as a footnote disclosure.

A city provides a local business with a tax abatement so that real estate taxes will be avoided for the next five years. In exchange, the business agrees to construct a new facility to hire 50 or more individuals. How is this reported? Choose the correct.a. Only on the government-wide financial statements.b. Only on the fund financial statements.c. On both the government-wide and fund financial statements.d. Only as a footnote disclosure.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter13: Corporations: Earning & Profits And Distributions

Section: Chapter Questions

Problem 10P

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A city provides a local business with a tax abatement so that real estate taxes will be avoided for the next five years. In exchange, the business agrees to construct a new facility to hire 50 or more individuals. How is this reported? Only on the government-wide financial statements. Only on the fund financial statements. On both the government-wide and fund financial statements. Only as a footnote disclosure.
A city agrees to allow the Jones Company to operate within its geographical boundaries without having to pay real estate taxes for the following 10 years. In exchange, Jones agrees to continue employing at least 120 people at all times. For this tax abatement, which of the following does the city not have to disclose? Choose the correct.a. The party receiving the tax abatement.b. The purpose of the tax abatement program.c. Dollar amount of taxes abated.d. The tax being abated.
A city agrees to allow the Jones Company to operate within its geographical boundaries without having to pay real estate taxes for the following 10 years. In exchange, Jones agrees to continue employing at least 120 people at all times. For this tax abatement, which of the following does the city not have to disclose? The party receiving the tax abatement. The purpose of the tax abatement program. Dollar amount of taxes abated. The tax being abated
A city issues a 60-day tax anticipation note to fund operations until taxes have been collected. What recording should it make? Choose the correct.a. The liability should be reported in the government-wide financial statements; an other financing source should be shown in the fund financial statements.b. A liability should be reported in the government-wide financial statements and in the fund financial statements.c. An other financing source should be shown in the government-wide financial statements and in the fund financial statements.d. An other financing source should be shown in the government-wide financial statements; a liability is reported in the fund financial statements.
A city issues a 60-day tax anticipation note to fund operations until taxes have been collected. What recording should it make? The liability should be reported in the government-wide financial statements; an other financing source should be shown in the fund financial statements. A liability should be reported in the government-wide financial statements and in the fund financial statements. An other financing source should be shown in the government-wide financial statements and in the fund financial statements. An other financing source should be shown in the government-wide financial statements; a liability is reported in the fund financial statements.
The City of Frost has a 20-year debt outstanding. On the last day of the current year, this debt has an outstanding balance of $4.8 million and five years remaining until it is due. On that date, the debt is paid off early for $5 million. A new debt is issued (with a lower interest rate) for $5.4 million. How is the $200,000 between the amount paid and the outstanding balance of $4.8 million recognized on government-wide financial statements? Choose the correct.a. As an expense.b. As a reduction in liabilities.c. As a deferred outflow of resources on the statement of net position.d. As an asset on the statement of net position.
Officials for the city of Winfield have agreed to forgo real estate taxes normally charged to Jamieson Corporation for the subsequent 10 years. In exchange, Jamieson has agreed to build a distribution facility that is expected to hire 500 new employees. What information must the city provide in its financial statements to inform taxpayers and other interested parties about the nature of this tax abatement?
Officials for the city of Winfield have agreed to forgo real estate taxes normally charged to Jamieson Corporation for the subsequent 10 years. In exchange, Jamieson has agreed to build a distribution facility that is expected to hire 500 new employees. What information must the city provide in its financial statements to inform taxpayers and other interested parties about the nature of this tax abatement? 4P A city agrees to allow the Jones Company to operate within its geographical boundaries without having to pay real estate taxes for the following 10 years. In exchange, Jones agrees to continue employing at least 120 people at all times. For this tax abatement, which of the following does the city not have to disclose? The party receiving the tax abatement. The purpose of the tax abatement program. Dollar amount of taxes abated. The tax being abated
The City of Greystone maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations: The City levied property taxes for the current fiscal year in the amount of $8,000,000. At year-end, $720,000 of the taxes had not been collected. It was estimated that $330,000 of that amount would be collected during the 60 days after the end of the fiscal year and that $360,000 would be collected after that time and the balance would be uncollectible. The City had recognized the maximum of property taxes allowable under modified accrual accounting. $255,000 of property taxes had been deferred at the end of the previous year and was recognized under modified accrual as revenue in the current year. In addition to the expenditures reported under modified accrual accounting, the city computed that an additional $104,000…
The City of Bagranoff holds $90,000 in cash that will be used to make a bond payment when the debt comes due early next year. The assistant treasurer had made that decision. However, just before the end of the current year, the city council formally approved using this money in this way. The city council has been designated as the highest level of decision-making authority for this government. What impact does the council’s action have on the reporting of fund financial statements? Fund balance—unassigned goes down and fund balance—restricted goes up. Fund balance—assigned goes down and fund balance—committed goes up. Fund balance—unassigned goes down and fund balance—assigned goes up. Fund balance—assigned goes down and fund balance—restricted goes up.
The City of Dickens has a fiscal year ending December 31, Year 5. The city council is viewed as the highest level of decision-making authority for the government. For each of the following, indicate whether the overall statement is true or false. Assume that each situation is independent of all others.a. On December 30, Year 5, the city spends $900,000 on a sidewalk project that is not a special assessment. On the Year 5 financial statements, a reconciliation is presented that starts with the total change in fund balances for the governmental funds and works down to end with the total change in net position for the governmental activities. As a result of this acquisition, this $900,000 must be subtracted as part of this reconciliation.b. All members of the board of directors for a nature museum are appointed by the city. This fact alone makes this nature museum a component unit of the city.c. The city appoints none of the governing board of a parks commission. This fact alone prohibits…
The following information pertains to Hempstead City which has a December 31st year-end. Fiscal year 2020 governmental fund property tax revenues that are measurable and available equaled $12,000,000. Sales taxes collected by merchants in 2020 but not remitted to Hempstead City until January 2021 equaled $4,000,000. For the year ended December 31, 2020, Hempstead City should recognize revenues in its governmental fund financial statements of: A. $18,000,000. B. $16,000,000. C. $14,000,000. D. $12,000,000.