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Rasek [7]
3 years ago
8

Taxes on the property buyer Tamara is purchasing are $8,200, due on December 31. If the closing is set for June 29th, using the

365-day method, how much of the taxes will be credited to the buyer? (Assume it is not a leap year and the day of closing belongs to the seller.)
Business
1 answer:
Ilia_Sergeevich [38]3 years ago
3 0

Answer:

$4,044

Explanation:

Calculation for how much of the taxes will be credited to the buyer

First step is to divide the annual taxes by the numbers of days in a year

$8,200 / 365 days

= $22.466 per day

Second step

Based on the information given we were told that the Seller's ownership started from January 1- June 29 which gave us 180 days, this means that we would multiply $22.466 per day by 180 days in order to know how much of the taxes will be credited to the buyer

Hence,

Amount credit to the buyer=180 days

x 22.466

Amount credited to buyer= $4,044

Therefore the amount of the taxes that will be credited to the buyer will be $4,044

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