Question

If a property transaction is scheduled to close on May 14, calculate the individual tax responsibility for the buyer if the total tax owed at the end of the year is $5,000. For this problem, assume that we are dealing with a 365-day calendar year.

Answer 1

$3,178.08

Step-by-step explanation:

Days: 31 (January) + 28 (February) + 31 (March) + 30 (April) + 13 (May) = 133 days

$5,000 * 133/365 = $1,891.92

$5,000 - $1,891.92 = $3,178.08