If a seller prepaid the taxes of $2,100 and the closing is set for March 15, using the 12-month/30-day method what will the buyer owe the seller as prorated taxes?

To calculate the prorated taxes that the buyer owes the seller, we start by determining the daily tax rate and then how many days of taxes need to be credited to the buyer.

First, we determine the daily tax amount based on the seller's annual taxes of $2,100. Using the 12-month/30-day method, the monthly tax is calculated by dividing the total tax by 12:

[ \text{Monthly Tax} = \frac{2,100}{12} = 175. ]

Next, we find the daily tax:

[ \text{Daily Tax} = \frac{175}{30} = \frac{175}{30} \approx 5.8333. ]

Now that we have the daily tax amount, we calculate how many days the seller owned the property in the year before the closing date. March 15 signifies that the seller owned the property for 74 days out of the year (from January 1 to March 15).

We now multiply the daily tax by the number of days:

[ \text{Total Taxes Owed to Seller} = 5.8333 \times 74 \approx 430.83. ]

To find the balance for