Martina Is Purchasing a Home in Winnipeg

question 41

Multiple Choice

Martina is purchasing a home in Winnipeg.The closing date is October 1.Each year's real property taxes are payable in June for taxes owed to December 31.The amount of the taxes paid by the vendor for the entire year is $2400.In the circumstances of this transaction,which of the following is a valid statement with respect to an adjustment on taxes?

• A) The vendor will receive approximately $1200 in adjustment from the purchaser.
• B) The vendor will receive approximately $600 in adjustment from the purchaser.
• C) The purchaser will receive approximately $1800 in adjustment from the vendor.
• D) The purchaser will receive approximately $800 in adjustment from the vendor.

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Definitions:

Missing Amount

A term used in accounting and finance to denote a value that must be found within a set of numbers or financial statements when it is not explicitly provided.

Service Business

A type of business that provides intangible products, such as expertise, time, or effort, to consumers in exchange for payment.

Retail Business

A type of business that sells goods directly to consumers, typically operating from physical locations or through online platforms.

Manufacturing Business

A type of business that produces finished goods from raw materials by using various processes, machinery, and operations.