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2 years ago

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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.) $4,044 $4,178 $4,077 $4,123???

1 answer:

rosijanka [135]2 years ago

3 0

The buyer will be paying taxes for 185 days, so will pay

... (185/365)·$8200 = $4156

Your most appropriate choice seems to be $4178, which corresponds to 186 days' taxes.

_____

There are 30 days in each month in the last half of the year, plus 1 additional day in each of July, August, October, and December. The 30th of June also belongs to the buyer (but the 29th, closing day, does not), so there are 180+5 = 185 days for which the buyer must pay taxes. The answer choices don't include that value.

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