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Whitepunk [10]
3 years ago
8

Dan is buying Jessica’s house. The closing date (day belongs to seller) of the sale transaction is March 9th. Current year real

estate taxes are $1,900 (will be billed to Dan next year). Use the 365-day method for prorating. What is Jessica's share of the real estate taxes for the current year?
Business
2 answers:
UkoKoshka [18]3 years ago
8 0

Answer:

JESSICA'S SHARE = $353.98

Explanation:

Given the following ;

Current year real estate tax= $1,900

Transaction Date = 9th March (Belongs to seller (Jessica))

Using the 365-day method of prorating :

Daily tax amount = annually tax fee ÷ number of days

Daily tax amount = $1900 ÷ 365 = $5.205479

JESSICA'S share of tax payment:

(January 1 - March 9) = 31 days + 28 days + 9 days = 68 days

JESSICA'S Real Estate tax payment =

Number of days × daily real estate tax amount =

68 × $5.205479 = $353.98

wariber [46]3 years ago
4 0

Answer:

$354

Explanation:

Annual amount / 365 days or monthly amount /length of month = daily amount.

Therefore;

Daily amount x the numbers of days = proration.

$1,900 / 365 = $5.21 daily amount

(31 January days + 28 February days + 9 March days =) 68 days

$5.21 x 68 = $354

Therefore Jessica's share of the real estate taxes for the current year is $354

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