Answer:
C). The seller's share of $2,525.76
Explanation:
The 365-day assumes a total of 365 days in a year. So the number of days up to when the closing is set should be determined as shown;
<em>Step 1: Determine total number of days up to October 15</em>
Total days up to October 15=Number of days in January+number of days in February+number of days in March+number of days in April+number of days in May+number of days in June+number of days in July+number of days in August+number of days in September+number of days up to October 15
where;
number of days in January=31
number of days in February=28
number of days in March=31
number of days in April=30
number of days in May=31
number of days in June=30
number of days in July=31
number of days in August=31
number of days in September=30
number of days up to October 15=15
replacing;
Total days up to October 15=(31+28+31+30+31+30+31+31+30+15)=288 days
<em>Step 2: Determine the amount of taxes that will be credited to the buyer</em>
Sellers share=(number of days up to October 15/total number of days in a year)×Taxes due on December 31
where;
number of days up to October 15=288 days
total number of days in a year=365
Taxes due on December 31=$3,200
replacing;
Sellers share=(288/365)×3,200=2,524.93 which is approximately equal to 2,525.76
The seller's share of $2,525.76
