Real estate tax is levied for the calendar year from Jan 1 to Dec 31 and is payable in the following year (in arrears). The accrued portion is for the period from Jan 1 through the date of closing (the closing-day tax is the seller's responsibility). A sale is to be closed on June 8 using a Banker's Year (360 days, 30 day months) Please use the real estate tax amount of $10,800 to calculate the prorated amount of taxes that would result at closing and how they would be distributed. $6,060 is credited to the seller and debited to the buyer $4,740 is debited to the seller and credited to the buyer $6,060 is debited to the seller and credited to the buyer $4,740 is credited to the seller and debited to the buyer

Real estate tax is levied for the calendar year from Jan 1 to Dec 31 and is payable in the following year (in arrears). The accrued portion is for the period from Jan 1 through the date of closing (the closing-day tax is the seller's responsibility). A sale is to be closed on June 8 using a Banker's Year (360 days, 30 day months) Please use the real estate tax amount of $10,800 to calculate the prorated amount of taxes that would result at closing and how they would be distributed. $6,060 is credited to the seller and debited to the buyer $4,740 is debited to the seller and credited to the buyer $6,060 is debited to the seller and credited to the buyer $4,740 is credited to the seller and debited to the buyer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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