A City That Has a 12/31 Fiscal Year End Has

Multiple Choice

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: $\begin{array}{rcc}1 / 15 / 14 & \text { for property taxes levied in } 2012 \text {, due in } 2013 & \$ 25,000 \\2 / 15 / 14 & \text { for property taxes levied in } 2012 \text {, due in } 2013 & \$ 15,000 \\3 / 15 / 14 & \text { for property taxes levied in 2012, due in 2013 } & \$ 10,000 \\6 / 20 / 14 & \text { First installment of taxes levied in } 2013 \text {, due } 6 / 20 / 14 & \$ 350,000 \\12 / 20 / 14 & \text { Second installment of taxes levied in } 2013 \text {, due } 12 / 20 / 14 & \$ 150,000 \\1 / 15 / 15 & \text { for property taxes levied in 2013, due in 2014 } & \$ 15,000 \\2 / 15 / 15 & \text { for property taxes levied in 20130, due in } 2014 & \$ 10,000 \\3 / 15 / 15 & \text { for property taxes levied in } 2013 \text {, due in } 2014 & \$ 5,000\end{array}$ The total amount of property tax revenue that should be recognized in the governmental fund financial statements in 2014 is:

A) $600,000.
B) $575,000.
C) $535,000.
D) $525,000.