A city that has a 12/31 fiscal year end has adopted a policy of recognizing property tax revenue consistent with the 60-day rule allowable period under GAAP. Property taxes of $600,000 (of which none are estimated to be uncollectible) are levied in October 2010 to finance the activities of fiscal year 2011. Property taxes are due in two installments June 20 and December 20. Cash collections related to property taxes are as follows:
1/15/11 for property taxes levied in 2009, due in 2010 $ 25,000
2/15/11 for property taxes levied in 2009, due in 2010 $ 15,000
3/15/11 for property taxes levied in 2009, due in 2010 $ 10,000
6/20/11 First installment of taxes levied in 2010, due 6/20/11 $350,000
12/20/11 Second installment of taxes levied in 2010, due 12/20/11 $150,000
1/15/12 for property taxes levied in 2010, due in 2011 $ 15,000
2/15/12 for property taxes levied in 2010, due in 2011 $ 10,000
3/15/12 for property taxes levied in 2010, due in 2011 $ 5,000
The total amount of property tax revenue that should be recognized in the governmental fund financial statements in 2011 is:
a) $600,000.
b) $575,000.
c) $535,000.
d) $525,000