Description: So they have large and expensive houses there on Yacht Haven Lane in Saint John, New Brunswick, and so of course they pay their fair share of property taxes. You can imagine then, that the Yacht Haven Lane residents would expect the City to plow their road. But years ago, when the property developer, Sandy Robertson, began the development, his road into the community was classified as too narrow to be designated as a City of Saint John public road. Therefore he and the residents had to assume the costs of snow plowing, despite their contributions to the public purse.
Date: January 4 , 2019
1) Whose side do you take on this discussion?
2) If you were the Treasurer of the City of Saint John, what advice would you present to the City to help in the decision regarding snow plowing on Yacht Haven Lane?
3) If you are a company that has just received your property tax bill for the year, what journal entries would you need to record to set up the transactions related to property tax? Hint: You may want to take a look at Chapter 10 of Wiley’s Financial Accounting: Tools for Business Decision-Making.