The board of trustees of an independent school district is

The board of trustees of an independent school district is contemplating several policy changes
and other measures, all of which it intends to implement within the fiscal year that ends August
31, 2018. It requests your advice on how the changes would affect the reported general fund
revenues. For each of the proposals, indicate the impact on revenues (or accounts comparable
to revenues, such as proceeds from sale of capital assets) and provide a brief explanation.
Address the impact on both the fund and the government-wide financial statements.1. Allow a
three-month grace period for the payment of property taxes. District property taxes for the fiscal
year ending August 31 are currently payable in 10 installments. The final installment is due on
August 31. The proposed change would give taxpayers a three-month grace period before
interest and penalties are assessed. The district estimates that the change would affect $2
million in receipts.2. Sell a parcel of land that the district purchased three years earlier for
$450,000. Current market value is $500,000.3. Request that a donation be advanced from
December 2018 to August 2018. An alumnus of a district high school has indicated a
willingness to donate to the district laboratory equipment having a fair market value of $400,000,
along with real estate having a fair market value of $300,000. The district intends to use the
equipment in student labs. It plans to sell the real estate as soon as possible and, in fact, has an
acceptable offer from a buyer.4. Sell parking permits to students in the semester prior to that for
which they are applicable. The district now sells parking permits to students at the beginning of
the fall semester. The permits cover the period from September 1 through June 30. To reduce
the start-of-year administrative burden upon staff, the district proposes to begin sale of the
permits the previous spring. It estimates that in spring 2018 it will sell $6,000 worth of permits
that would otherwise be sold the following September.View Solution: The board of trustees of
an independent school district is
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