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Master Exam #3
Question 144 of 150
Question: Assume that the annual property taxes on a home are $1,380; that the home is being sold as of May 1; and that the taxes for the current year have been paid. If the buyer and seller agree to prorate the property taxes as of the sale date, the buyer's portion of the taxes would be most nearly:
A: $1,380;
B: $1,150;
C: $690;
D: $230.
Correct Answer is : D
With the tax year from July 1 through June 30, the buyer would be obligated to reimburse the seller for the taxes the seller had already paid for the months of May and June. At an annual cost of $1,380, the monthly cost is $115. 2 x $115 = $230.