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A city that has a 12/31 fiscal year end has adopted a policy of recognizing the maximum amount of property tax revenue allowable under GAAP. Property taxes of $600,0000 (of which 10% are estimated to be uncollectible) are levied in October 2007 to finance the activities of the fiscal year 2008. During 2008, cash collections related to property taxes levied in October 2007 were $500,000. In 2009 the following amounts related to the property taxes levied in October 2007 were collected: January $25,000; March, $5,000. For the fiscal year ended 12/31/08, what amount should be recognized as property tax revenues related to the 2007 levy on the government-wide financial statements?
a) $600,000.
b) $540,000.
c) $525,000.
d) $500,000.
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