Choice "A" is correct. The $300,000 should be reported in a special revenue fund since the government is agreeing to accept cash and spend it in a specified way and the $500,000 belongs in an agency fund. Escheat property held for individuals, private organizations, or another government should be reported in a private purpose trust fund, or in the governmental or proprietary fund in which otherwise reported.Choice "c" is incorrect. The $300,000 results from the government's agreement to accept resources and to spend them in a specified way (i.e., law enforcement activities). This is an example of a special revenue fund.Choices "d" and "b" are incorrect. The $500,000 belongs in an agency fund since Arlen is collecting sales taxes to be remitted to other governmental units.