Real Estate Math

A NJ buyer closes on October 15. Real estate taxes of $9,000/year are paid in advance for the October–December quarter ($2,250). How much does the seller owe the buyer for taxes at closing?

A$342✓ Correct
B$675
C$1,125
D$2,250

Explanation

Taxes cover Oct–Dec (92 days). Closing is Oct 15; seller owns through Oct 14 (14 days).

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