I'm stumped in reference to figuring the answer for the following question. If anyone can help I would be so thankful. The question is as follows:
A county fire department receives property tax revenue on a 55% (December), 40% (April), 5% (June) basis. The uncollectible portion is .05%. If the department received %5.1 million in December, the annual property tax revenues will be.
The book answer is $9,268,091 but I can't figure out how they got the answer. Please help.
To find the answer to this question, we can use the information given about the property tax revenue ratios and the uncollectible portion.
Let's break it down step by step:
1. Start with the property tax revenue received in December, which is $5.1 million. This represents 55% of the annual property tax revenue.
2. To find the total annual property tax revenue, we need to calculate the revenue for each month using the given ratios.
- December contribution: 55%
- April contribution: 40%
- June contribution: 5%
3. Subtract the uncollectible portion, which is 0.05% of the total annual revenue.
Now, let's calculate each step:
1. Multiply the December revenue by the reciprocal of its corresponding ratio to find the total annual revenue:
$5.1 million / (55/100) = $9.2726 million
2. Calculate the revenue for April and June using the same method:
- April revenue: $9.2726 million * (40/100) = $3.709 million
- June revenue: $9.2726 million * (5/100) = $0.46363 million
3. Subtract the uncollectible portion from the total annual revenue:
$9.2726 million - ($9.2726 million * (0.05/100)) = $9.268091 million
The answer is approximately $9.268091 million, which matches the book answer of $9,268,091.
So, the annual property tax revenues will be $9,268,091.