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Vladimir [108]
3 years ago
15

A sale transaction closes on April 15th. The day of closing belongs to the seller. Real estate taxes for the year, not yet bille

d, are expected to be $2,110. According to the 365-day method,
what is the seller's share of the tax bill?
Business
1 answer:
Rasek [7]3 years ago
6 0

Answer:

$607

Explanation:

Data provided in the question:

Date of closing of sales transaction = April 15

Expected tax for the year = $2,110

Number of days in an year = 365

Now,

Per day tax = [ Expected tax for the year ] ÷ [ 365 ]

= $2,110 ÷ 365

= $5.781 per day

Time period from January 1 to April 15 in days = 105 days

Therefore,

The seller's share of the tax bill

= Per day tax × Time period from January 1 to April 15 in days

= $5.781 × 105

= $606.98 ≈ $607

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