A is corrent. The requirement is to calculate the amount of property tax revenue. A is corrent because the property tax revenue should be equal to the total taxes levied for the year less the estimate of uncollectible amounts, or $1,980,000 [$2,000,000 – ($2,000,000 × 1%)].
B is incorrect because this is the amount of total taxes collected during the year.
C is incorrect because this amount does not consider the amount of estimated uncollectible taxes.
D is incorrect because this is the amount of current year taxes collected during the year.
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