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Vlada [557]
3 years ago
8

The city of Brittainville’s Special Revenue Fund levied $350,000 in taxes, of which 1% was expected to be uncollectible during t

he current year. Also during the year, the fund collected $ 7,500 of interest revenue and $ 50,000 was transferred from the General Fund. As a result of these transactions fund balance will increase by
a. $407,500
b. $404,000
c. $357,500
d. $354,000
e. $400,000
Business
1 answer:
Arturiano [62]3 years ago
8 0

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

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