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15 June, 23:51

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?

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  1. 16 June, 00:12
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    The seller owe the buyer amounts to $384.25 at the closing

    Explanation:

    The amount to which the seller owe to the buyer at the closing is computed as:

    = Number of days * Amount of taxes per day

    = 165 * $2.3288

    = $384.25

    Working Note:

    Number of days = January 1 - June 15

    = 165 days

    Amount of taxes per day = Annual taxes / Number of days in the year

    = $850 / 365

    = $2.3288 per day

    (Jan. 1 - June 14 = 165 days. $850 / 365 = $2.3288 per day tax liability. 165 days x $2.3288 = $384.25)
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