A property was sold where the property taxes had been paid for the current tax year. The escrow closed 10/1/2004. However, the contract had allowed the seller to remain on the property for an additional three months after the close of escrow. For the purpose of proration, how would the taxes be treated?
A. The seller would be credited for three months' taxes.
B. The seller would be credited for six months' taxes.
C. The buyer would be credited with six months' taxes.
D. The seller would be credited with nine months' taxes.
Answer: D. The seller would be credited with nine months' taxes.
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Which of the following is a drawback of the production-orientation philosophy?
a. It ignores the importance of assessing a firm's internal capabilities. b. It overlooks the importance of market research. c. It places little emphasis on the assessment of manufacturing plants and facilities. d. It gives importance to the sales function over other functions.
ABC Manufacturing has 6 machines that perform a particular task. Breakdowns occur frequently for this machine. Past records indicate that the number of breakdowns that occur each day is described by the following probability distribution:
Number of Breakdowns Probability 0 0.4 1 0.3 2 0.2 3 0.1 More than 3 0.0 (a) What is the expected number of breakdowns in any given day? (b) What is the variance for this distribution? (c) What is the probability that there will be at least 2 breakdowns in a day?