The Antarctica Company closes its books annually on December 31, while the city in which it is located has a fiscal year beginning on April 1 and ending on March 31

Accounting Nov 22, 2020

The Antarctica Company closes its books annually on December 31, while the city in which it is located has a fiscal year beginning on April 1 and ending on March 31. Taxes on property are assessed on April 1 of each year, Property taxes in the amount of $360,000 and $390,000 were assessed on April 1, 2019 and 2016, respectively. For the year ended December 31, 2020, the Antarctica Company would report property tax expense of $360,000 $370,000 $382,500 d. $390,000 c.

Expert Solution

Solution: $382,500
Working:
Property tax will include 3 months from amount assessed on April 1, 2019; and 9 months from amount assessed on April 1, 2020
= 360,000 * 3/12 + 390,000 * 9/12
= $382,500

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