Answer:
Approximately $2,525
Explanation:
If Taxes on the property Buyer Alan is purchasing are $3,200 due on December 31, and the closing is set for October 15, using the 365-day method, the amount of the taxes that will be credited to the buyer is:
[Total days in a year - Balance days / Total days] x Amount
[(365 days - 77 days) / 365] x $3200 = $2524.93 approximately $2525
Answer:
The taxes credited to the buyer will be $675.
Explanation:
We will divide the total taxes due by 365 to get the taxable amount due per day and then multiply it by the days the seller held the property to calculate the amount due on him.
01 January - 15 October = 288 days
The seller's share is = [tex]\frac{3,200}{365}[/tex] * 288 = $2,524.93
The amount credited to the buyer will be $3,200 - $2,524.93 = $675
