Aproperty's taxes are $9,540 and are paid for in arrears. the property was sold and closing took place on march 7. the seller was responsible for the day of closing. using the 360 day method, how will taxes be prorated?

1 - credit the buyer $1,776 and debit the seller $1,776.
2 - credit the seller $186 and debit the buyer $186.
3 - credit the buyer $1,590 and debit the seller $1,590.
4 - credit the buyer $1,675.50 and debit the seller $1,675.50.

1) Credit the buyer $1,776 and debit the seller $1,776.

Step-by-step explanation:

For this, we are to simply understand and follow the calculation of proration. Proration is the allocation or dividing of certain money items at the closing.

The buyer pays:

Total taxes = $ 9540

Total Time Span before closing took place = 2 months and 7 days

Per month charge = = $795 per month

Charges per day =   =$ 26.5 per day

2 months charge = 795 x 2 = $1590

Charges for 7 days = 7 x 26.5 = $185.5

Total Charges = 1590 + 185.5 = $ 1775.5 ≈ $1776 (Rounding off)

As the property's taxes were paid for by the buyer and the seller was responsible for the day of closing, and buyer paid for the arrears too of the previous 2 months and 7 days, the buyer gets a credit and seller gets a debit. The seller owes the buyer $1776.

Hence,

The buyer gets a credit of $1,776 and Seller gets a debit of $1,776

a

step-by-step explanation:

u take $30 minus $24. the answer/original($30)