Real Estate Math
Annual property taxes on an Indiana home are $4,200. If the property is sold on April 1, what is the seller's tax proration credit (debit) to the buyer assuming taxes are paid in arrears and using a 360-day year?
A$1,050✓ Correct
B$1,400
C$1,750
D$3,150
Explanation
Taxes accrue from Jan 1 to April 1 = 3 months. Seller's share = (3/12) × $4,200 = $1,050.
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