Using the calendar year proration method, what will the seller owe at closing if the daily property tax rate is $1.23 and the seller hasn't made any payments by August 31?

To determine what the seller owes at closing using the calendar year proration method, we first need to calculate the total property tax liability for the entire year based on the daily property tax rate provided.

1. Calculate Annual Property Tax: Multiply the daily property tax rate by the number of days in the year (365).

• Annual Property Tax = $1.23 × 365 = $448.95.

2. Determine Months Owed: Since the question specifies that the seller hasn't made any payments by August 31, we need to calculate how many months or days of property tax are owed from January 1 to August 31. This is 8 months or 243 days (31 days for January, 28 for February, 31 for March, 30 for April, 31 for May, 30 for June, 31 for July, and 31 for August).

3. Calculate the Amount Owed: We take the daily rate and multiply by the number of days owed.

• Amount Owed = $1.23 × 243 = $298.29.

Since the question is asking for the amount rounded to the nearest dollar, it results in the seller owing approximately $298 at