A house is sold on June 15. The annual taxes in the amount of $850 for the year have not been paid. What does the seller owe the buyer at closing? a) $315.21 b) $381.92 c) $384.25 d) $475.18

Question

Business

Jazmin Nicholson

2 February, 12:04

A house is sold on June 15. The annual taxes in the amount of $850 for the year have not been paid. What does the seller owe the buyer at closing? a) $315.21 b) $381.92 c) $384.25 d) $475.18

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Answers (1)

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Christian Boone · Answer 1

Option (c) $384.25

Explanation:

Data provided in the question:

Date on which house is sold = June 15

Annual taxes in the amount = $850

Now,

Tax per day = [ Annual taxes ] : Total number of days in a year ]

= $850 : 365

= $2.3288 per day

Therefore,

The amount seller owe the buyer

= Tax per day * Number of days seller owned house

= $2.3288 * 165

= $384.25

Hence,

Option (c) $384.25