48. (Property tax revenue recognition)
In its General Fund balance sheet at December 31, 2013, Marathon City reported Property taxes receivable of $40,000, deferred property tax revenues of $15,000, and an allowance for uncollectible taxes of $0. At the start of the year 2014, Marathon City made the following journal entry to record its property tax levy:
Property taxes receivable950,000
Allowance for refunds and uncollectible taxes10,000
Revenues - property taxes 940,000
During the year 2014, the city collected all the property taxes receivable outstanding at December 31, 2013. It also collected $920,000 of the receivables recognized at the beginning of 2014, and wrote off $6,000 of receivables against the allowance account. On December 31, 2014, the Marathon City finance director made the following determinations regarding the property taxes outstanding at that date:
a. All outstanding property taxes would be collected, so there was no need for the allowance for uncollectible property taxes.
b. The City would collect about $15,000 of the outstanding property taxes receivable during the first 60 days of 2015 and the remainder during the latter part of 2015.
Required:Calculate how much property tax revenues Marathon City should recognize in 2014.