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Master Exam #3
Question 143 of 150
Question: Mr. and Mrs. Martin have sold their home, with the escrow scheduled to close on March 1. The annual property taxes on their home are $1,440. Assuming that the first installment of taxes has already been paid, and the second installment is to be prorated on the date of the close of escrow, the amount of the taxes which would normally be charged to the buyer would be approximately:
A: $240;
B: $360;
C: $480;
D: $960.
Correct Answer is : C
The monthly taxes are $120. The tax year runs July 1 through June 30. The buyer would owe taxes for March, April, May, and June (4 months); hence, $480.