Question

The following revenues were among those reported by Tosa Township in 2018:

Net rental revenue (after depreciation) from a parking garage owned by Tosa..... $40,000

Interest earned on investments held for employees' retirement benefits................ $100,000

Property Taxes......................................................................................................... $6,000,000

What amount of the foregoing revenues should be accounted for in Tosa's governmental funds?

a. $6,140,000

b. $6,100,000

c. $6,040,000

d. $6,000,000

Please show work (if any) and explain the answer you chose. Thank you.

Answer 1

Answer:$6,000,000

Explanation :

Only the $6,000,000 of property taxes should be accounted for in the general fund. The $40,000 net rental revenue should be accounted for in an enteprise fund and the $100,000 of interest earned on investments held for employees' retirement benefits should be accounted for in a pension trust fund.

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