Question

Brad is selling his home to Sally with a closing date of January 30. Brad's taxes for the last year were $3,756.75. How much is Brad's share of the taxes, using a 360-day-year statutory proration?

a) $125.225
b) $156.50
c) $135.00
d) $120.75

Answer 1

To calculate Brad's share of the taxes, we must divide the annual taxes by 360 to get the daily rate, then multiply this by the number of days Brad owned the home. The correct amount would be $313.0625, which does not match any of the provided options. There may be an error in the provided information.

Step-by-step explanation:

To calculate Brad's share of the taxes for the time he owned the home until the closing date of January 30th, we can follow these steps:

• First, determine the daily tax rate by dividing the annual tax amount by 360 (based on the statutory 360-day year for proration). $3,756.75 / 360 days = $10.4354167 per day.
• Then, determine the number of days Brad owned the home this year. Since the closing is on January 30th, that is 30 days of ownership in the year.
• Finally, multiply the daily tax rate by the number of days Brad owned the home: $10.4354167 * 30 days = $313.0625.

However, none of the provided options match this calculation. It is possible that there may have been a miscalculation in the question provided or the correct option is not listed. Please ensure the tax rate, dates, and options provided are accurate.