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Nonexchange revenues can be of four types.

The GASB has identified four classes of nonexchange revenues:

Derived tax

Imposed

Government mandated

Voluntary

For each of the following revenue transactions affecting a city, identify the class in which the revenue falls and prepare an appropriate fund journal entry for the current year as necessary. Provide a brief explanation of$,$ or justification for, your entry.

$1.$ In December, the state in which the city is located announced that it would grant the city $$20$ million to bring certain public facilities into compliance with the state's recently enacted disability$/$accessibility laws. As of year$$end$,$ the city had not yet received the funds, and it had not yet expended any funds on the state$$mandated facility improvements.

$2.$ The city imposes a $$100$ tax on each sale of real estate. The tax is collected by the title companies that process the sales and must be forwarded to the city within $30$ days of the transaction. In December, there were $600$ sales of real estate. As of year$$end$,$ the city had collected $$40,000$ of the $$60,000$ that it was owed. It collected the balance in January.

$3.$ In December, the state announced that the city's share of state assistance for the calendar year $20$X$2$ would be $$120$ million.

$4.$ The city imposes a tax on all boats owned by residents. The tax is equal to $1$ percent of the assessed value of a boat $($determined by the city, taking into account the boat's original cost and age$).$ The tax is payable on the last day of the year prior to the year for which the tax is applicable. In $20$X$1,$ the city levied $$640,000$ of $20$X$2$ boat taxes, of which it collected $$450,000.$

$5.$ A local resident sends to the city a copy of her will in which she bequeaths $$3$ million to the city museum upon her death.

$6.$ The U$.$S$.$ Department of Justice announces that it will reimburse the city up to $$400,000$ for the purchase of telecommunications equipment. As of year$$end$,$ the city had incurred only $$200,000$ in allowable expenditures.

$7.$ A resident donates $$10$ million in securities to the city to support a cultural center. Only the income from the securities$,$ not the principal, can be spent.

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