Muscat City received the following proceeds that are legally restricted. Taxes assessments to install sidewalks RO 100,000 Hotel taxes to promote tourism RO 20,000 What amount should be reported in the City’s special revenue funds?

Muscat City received the following proceeds that are legally restricted. Taxes assessments to install sidewalks RO 100,000 Hotel taxes to promote tourism RO 20,000 What amount should be reported in the City’s special revenue funds?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter1: Introductin To Taxation

Section: Chapter Questions

Problem 12P

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Planter County received the following proceeds that are legally restricted to expenditure for specified purposes:Levies on affected property owners to install sidewalks. . . . . . . . . . . . . . . . . . . . . . . . . $500,000Gasoline taxes to finance road repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000What amount would be accounted for in Planter’s special revenue funds?a. $1,400,000b. $900,000c. $500,000d. $0
Ibri municipality received the following proceeds that are legally restricted. Taxes assessments to install sidewalks RO 130,000 Hotel taxes to promote tourism RO 30,000 What amount should be reported in the City’s special revenue funds? a. RO 130,000 b. RO 160,000 c. RO 30,000 d. RO 100,000 Question 32 Question text Al Ubaida Association of women sells old furniture worth RO 3000 in an auction. The amount realized from sale is RO 3050. The accounting treatment for recording this transaction is: a. RO 50 added to furniture balance in the balance sheet b. RO 50 deducted from furniture balance in the balance sheet c. RO 50 debited to income and expenditure accounts and RO 3050 deducted from furniture balance in the balance sheet d. RO 50 credited to income and expenditure account and RO 3000 deducted from furniture balance in the balance sheet
The state government passes a law requiring localities to upgrade their water treatment facilities. The state then awards a grant of $500,000 to the Town of Midlothian to help pay for this cost. What type of revenue is this grant?a. Derived tax revenue.b. Imposed nonexchange revenue.c. Government-mandated nonexchange revenue.d. Voluntary nonexchange transaction.
The state government passes a law requiring localities to upgrade their water treatment facilities. The state then awards a grant of $500,000 to the Town of Midlothian to help pay for this cost. What type of revenue is this grant? Derived tax revenue. Imposed nonexchange revenue. Government-mandated nonexchange revenue. Voluntary nonexchange transaction.
A city receives a copy of its original charter from the year 1799 as a gift from a citizen. The document will be put under glass and displayed in the city hall for all to see. The fair value is estimated at $10,000. Indicate whether each of the following independent statements is true or false and briefly explain each answer.a. If the city government does not have a policy for handling any proceeds if it ever sells the document, the city must report a $10,000 asset within its government-wide financial statements.b. Assume that this gift qualifies for optional handling and that the city chooses to report it as an asset. For the government-wide financial statements, depreciation is required.c. Assume this gift qualifies for optional handling and the document is deemed to be exhaustible. The city must report an immediate expense of $10,000 in the government-wide financial statements.d. Assume that this gift qualifies for optional handling. The city must make a decision as to whether to…
The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of the municipal building. Which of the following is true for reporting the gift within the government-wide financial statements?a. A capital asset of $240,000 must be reported.b. No capital asset will be reported.c. If conditions are met, recording the sculpture as a capital asset is optional.d. The sculpture will be recorded but only for the amount paid by the city.
1. Beachfront property owners of the Town of Eden Beach requested a seawall be constructed to protect their beach. The seawall was financed through a note payable, which was to be repaid from taxes raised through a special assessment on their properties. The Town guarantees the debt and accounts for the special assessment through a debt service fund. Assume the special assessments were levied in 2023, recording a special assessment tax receivable and deferred inflow in the amount of $330,000. One-third of the assessment is to be collected each year and used to pay the interest and principal on the note. Requried: Record the following transactions that occurred in 2024: On June 30, $110,000 of the assessments became due and currently receivable. (Hint: The special assessment tax is recorded as revenue in the debt service fund when it becomes due.) July 31, the $110,000 was collected. September 30, interest of $19,800 and principal of $90,200 were paid. December 31, the books were…
A city constructs a special assessment project (a sidewalk) for which it is secondarily liable. The city issues bonds of $90,000. It authorizes another $10,000 that is transferred out of the general fund. The sidewalk is built for $100,000. The citizens are billed for $90,000. They pay this amount and the debt is paid off. Where is the $100,000 expenditure for construction recorded? It is not recorded by the city. It is recorded in the agency fund. It is recorded in the general fund. It is recorded in the capital projects fund.
A city constructs a special assessment project (a sidewalk) for which it is secondarily liable. The city issues bonds of $90,000. It authorizes another $10,000 that is transferred out of the general fund. The sidewalk is built for $100,000. The citizens are billed for $90,000. They pay this amount and the debt is paid off. Where is the $100,000 expenditure for construction recorded? Choose the correct.a. It is not recorded by the city.b. It is recorded in the agency fund.c. It is recorded in the general fund.d. It is recorded in the capital projects fund.
A city receives a copy of its original charter from the year 1799 as a gift from a citizen. The document will be put under glass and displayed in the city hall for all to see. The fair value is estimated at $10,000. Indicate whether each of the following Independent statements is true or false and briefly explain each answer. If the city government does not have a policy for handling any proceeds if it ever sells the document, the city must report a $10,000 asset within its government-wide financial statements. Assume that this gift qualifies for optional handling and that the city chooses to report it as an asset. For the government-wide financial statements, depreciation is required. Assume this gift qualifies for optional handling and the document is deemed to be exhaustible. The city must report an immediate expense of $10,000 in the government-wide financial statements. Assume that this gift qualifies for optional handling. The city must make a decision as to whether to…
The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of the municipal building. Which of the following is true for reporting the gift within the government-wide financial statements? A capital asset of $240,000 must be reported. No capital asset will be reported. If conditions are met, recording the sculpture as a capital asset is optional. The sculpture will be recorded but only for the amount paid by the city.
The accounting for contributions may depend on how they will be used.Green Hills County received the following two contributions during a year:• A developer (in exchange for exemptions to zoning restrictions) donated several acres of land that the county intended to convert to a park. The land had cost the developer $1.7 million. At the time of the contribution, its fair market value was $3.2 million. • A local resident donated several acres of land to the county with the understanding that the county would sell the land and use the proceeds to fund construction of a county health center. The land had cost the resident $2.5 million. The county sold the land intended for the health center for $3 million 30 days after the end of its fiscal year. 1. Prepare journal entries to record the contributions. Be sure to specify the appropriate fund in which they would likely be made.2. Comment on and justify any differences in the way you accounted for the two contributions.3. Comment on how…