Week 3 - Activity: Homework Chapter 4

Chapter 4 Exercise 4-2. The following information relates to Hudson City for its fiscal year ended December 31, 2020. During the year, retailers in the city collected $1,700,000 in sales taxes owed to the city. As of December 31, retailers have remitted $1,100,000. $200,000 is expected in January 2021, and the remaining $400,000 is expected in April 2021. On December 31, 2019, the Foundation for the Arts pledged to donate $1, up to a maximum of $1 million, for each $3 that the museum is able to collect from other private contributors. The funds are to finance construction of the city‐owned art museum. During 2020, the city collected $600,000 and received the matching money from the Foundation. In January and February 2021, it collected an additional $2,400,000 and also received the matching money. During the year, the city imposed license fees on street vendors. All vendors were required to purchase the licenses by September 30, 2020. The licenses cover the one‐year period from October 1, 2020, through September 30, 2021. During 2020, the city collected $240,000 in license fees.