Question: A county decided to keep land it bid in at its property tax sale to use for parks and recreation purposes. The redemption period has

A county decided to keep land it bid in at its property tax sale to use for parks and recreation purposes. The redemption period has passed, and the county has a valid deed to the land. Taxes, interest, penalties, and sheriff’s sale costs (of $150) applicable to the land total $15,000, and the land could have been sold for $12,000. The Tax Liens Receivable account in the General Fund has been charged to the Allowance for Uncollectible Tax Liens Receivable account, and the land has been capitalized (recorded) at $15,000 in the General Capital Assets accounts.

(a) Do you agree with the recording of this transaction?

(b) Would your answer differ if the land could be sold for $18,000?

Step by Step Solution

★★★★★

3.44 Rating (180 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a No the General Fund entry should have been Expenditures 12000 Allowance for Uncollectible Tax Lien... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

342-B-A-G-F-A (4301).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Do you agree with some accountants who argue that intangible assets have an indefinite life and therefore should not be subject to amortization? Explain.

Do you agree with I/O theorists that external factors are more important than internal factors to a firms achieving competitive advantage? Explain both your and their position.

Do you agree with Hofstede's findings about U.S. culture? Other cultures? On what do you base your agreement or disagreement?

(Tax Liens) A county decided to keep land it bid in at its property tax sale to use for parks and recreation purposes. The redemption period has passed, and the county has a valid deed to the land....

E 5 - 6 ( Tax Liens ) A county decided to keep land it bid in at its property tax sale to use for parks and recreation purposes. The redemption period has passed, and the county has a valid deed to...

A county decided to keep land it bid in at its property tax sale to use for parks and recreation purposes. The redemption period has passed, and the county has a valid deed to the land. Taxes,...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Prepare an Excel workbook that contains a separate spreadsheet for the government entity. The spreadsheets should list the following: The principle sources of revenues for the general fund The...

This International Student Edition is for use outside of the U.S. PAUL A. COPLEY 2010 Essentials of Accounting for Governmental and Not-for-Profit Organizations FOURTEENTH EDITION Mc Graw Hill...

TX Manufacturing purchased inventory for $2,500 and paid a $200 freight bill. TX Manufacturing returned $350 of the goods to the seller and then took a 2% purchase discount. What is TX...

Which of the following can be used to verify that carbon is tetrahedral? a. Methyl bromide does not have constitutional isomers. b. Tetrachloromethane does not have a dipole moment. c. Dibromomethane...

How to calculate the average accounts receivable, the accounts receivable turnover ratio, and the accounts receivable turnover in days?

Calculate the companys financial leverage ratios for 2016 and 2017.

Allotments are best defined as a. legislative appropriations subdivided into more detailed expenditure categories by the executive branch. b. legislative appropriations subdivided by time periods. c....

The budget data presented in a school district General Fund statement of revenues, expenditures, and changes in fund balances-budget and actual-are to be a. The original, legally adopted budget. b....

Which of the following items does a government with a modified accrual and encumbrances basis budget report differently in its budgetary basis statement of revenues, expenditures, and changes in fund...

The balance sheet of Heitman Management Consulting, Inc. at December 31, 2015, reported the following stockholders' equity: (Click the icon to view the stockholders' equity section of the balance...

FCOJ Inc., a prominent consumer products firm is debating whether to convert its all-equity capital structure to one that is 35 percent debt. Currently there are 5.000 shares outstanding and the...

The present value (at t=0 ) of the following cash flow stream is $6000 when discounted at 11% annually. That stream consists of payments made at the end of each of four periods. One of the payments,...