Answer:
fund balance will increase by $404,000
Explanation:
Given data:
Fund levived in taxes $350,000
1% of fund expected to be uncollectible
Amount of fund collected $7500 as interest revenue
$ 50,000 transferred to general fund
As it is given 1% is uncollectible , remaining value would be
= $350,000- $3,500 (1% * $350,000)
= $346,500
The other inflows are $7,500 + $50,000,
Total inflow is = $57,500.
Total transaction = $346,500 + $57,500 = $404,000
