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Wewaii [24]
3 years ago
5

Certain closing costs will be prorated to account for the period of time during which the seller occupied the house. If a transa

ction is scheduled to close on May 17 (136 days into a 365-day year), calculate the amount that the buyer will be credited if the particular closing cost in question is estimated to be $1,000 for the entire year.A. $372.60B. $1,000.00C. $182.19D. $624.66
Business
1 answer:
tankabanditka [31]3 years ago
5 0

Answer:

Option (a) $372.60

Explanation:

Data provided in the question:

Number of days during which the seller occupied the house = 136 days

Estimated cost for the entire year = $1,000

Now,

The period of time during which the seller occupied the house in years

= Number of days during which the seller occupied the house ÷ Total number of days in a year

= 136 ÷ 365

= 0.37260

Therefore,

The amount that the buyer will be credited = 0.37260 × $1,000

= $372.60

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Answer:

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Explanation:

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Here’s an excellent example from history.

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273 viewsView 2 Upvoters · Answer requested by Never Wong
Related Questions (More Answers Below)
3 0
3 years ago
Indiana Co. began a construction project in 2021 with a contract price of $150 million to be received when the project is comple
Over [174]

Answer:

Recognize $ 1.50 millions gross profit in 2022

Explanation:

 

                                        Year end 2021         Year end 2022

A  Contract Price               $150.00                          $150.00

B  Cost Incurred to Date    $36.00                             $94.50

                                                                                ($36 + $58.50)

C  Estimated cost yet to be

incurred to complete

the contract                        $84.00                              $0.50

Total Cost                          $120.00                              $135.00

D = B+C  

Percentage of Completion  30.00%                            70.00%

E = (B ÷ D) × 100

Revenue to date                  $45.00                             $105.00

F = A × E

G  Revenue of Previous year    $-                                $45.00

Net Revenue this year            $45.00                         $60.00

H = F - G

Cost to date                            $36.00                           $94.50

I (=B)

J  Cost to date of previous year $-                               $36.00

Net Cost for the year               $36.00                           $58.50

K = I - J

Gross Profits                              $9.00                            $1.50

L = H - K

Therefore the correct answer is Recognize $ 1.50 millions gross profit in 2022 hence, option is not available.

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