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30 December, 17:29

An investor is purchasing an apartment complex with 60 units. The monthly rent per each unit is $450. Closing is scheduled for March 22. What will be the March rent prorations?

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  1. 30 December, 17:52
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    Credit the buyer $7,200 and debit the seller $7,200.

    Explanation:

    Rationale: The total rents obtained are:

    USD 450 x USD 60 = USD 27,000 monthly.

    The day to day rents are:

    USD 900 (USD 27,000 : 30)

    The buyer will have the state for eight (8) days.

    USD 900 x 8 days = USD 7,200 March rents

    The seller will have to give to the buyer at ending:

    Credit the buyer $7,200 and debit the seller $7,200.
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