A contract has been ratified with closing set för March 20. This year's water bill, paid in arrears, is $120. Using a banker's the closing, what will the proration be for the wa- ter bill, and to whom will this amount be credited? A. $26.66 credit to the buyer B. $26.66 credit to the seller C. $26.27 credit to the buyer D. $26.27 credit to the seller year and prorating through
A contract has been ratified with closing set för March 20. This year's water bill, paid in arrears, is $120. Using a banker's the closing, what will the proration be for the wa- ter bill, and to whom will this amount be credited? A. $26.66 credit to the buyer B. $26.66 credit to the seller C. $26.27 credit to the buyer D. $26.27 credit to the seller year and prorating through
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
15
Transcribed Image Text:B. 400,000l ilidul leg
C. 1,000,000 bioe on wal di ao vina
4,000,000
in
14. Homeowners owe $1,282 per year
on their house, which is paid in arrears. They have
contracted to sell the home, with closing on April
23. How much will the tax proration be, using a
calendar year with the seller responsible for the day
of closing. Assume this is NOT a leap year.
A. $393.38
B$396.86 vil pauord sariguoou
Bl C. $885.11 W
D. $888.62 boeanqx 000,022 1 i
property tax
20.
3.51
900,02
15. A contract has been ratified with closing set for
March 20. This year's water bill, paid in arrears, is
$120. Using a banker's year and prorating through
the closing, what will the proration be for the wa-
ter bill, and to whom will this amount be credited?
A. $26.66 credit to the buyer
B. $26.66 credit to the seller
C. $26.27 credit to the buyer
D. $26.27 credit to the seller
Expert Solution
Step 1
15. Paid in arrears refers to the payment made after a service has been provided.
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