brinks44081 brinks44081

19-06-2019
Mathematics

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If a seller prepaid the taxes of $4,400 and the closing is set for May 19, using the 12 month/30 day method what will the buyer owe the seller as prorated taxes?

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sqdancefan sqdancefan

19-06-2019

Answer:

$2701.11

Step-by-step explanation:

The buyer owes for taxes for the remainder of the year, 11 days in May and 7 more months: 7 11/30 months out of 12.

(7 11/30)(1/12)(4400) = (221/360)(4400) = 2701 1/9 ≈ 2701.11

The buyer will owe prorated taxes of $2701.11.

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