The annual real estate taxes on a property amount to $18,000. The seller has paid the taxes in advance for the calendar year. If the closing is set for June 15, which statement is TRUE?
A. Credit to the seller $8,250; debit the buyer $9,750.
B. Credit the seller $18,000; debit the buyer $8,250.
C. Credit the buyer $9,750; debit the seller $9,750.
D. Credit the seller $9,750; debit the buyer $9,750.
2nd EditionDavid Anderson, Margaret Ray
7th EditionN. Gregory Mankiw
8th EditionN. Gregory Mankiw