Exercise $14-17($Algorithmic$)($L$0.1,2)$

Sally owns real property for which the annual property taxes are $$14,130.$ She sells the property to Kate on April $2,2022,$ for $$706,500.$ Kate pays the real property taxes for the entire year on October $1,2022.$

Assume a $365-$day year. Round any division to four decimal places. Round your final answers to the nearest dollar.

a$.$ How much of the property taxes can be deducted by Sally and how much by Kate?

Sally can deduct $ and Kate can deduct $ of the property taxes.

b$.$ What effect does the property tax apportionment have on Kate's adjusted basis in the property?

Kate's adjusted basis for the property is increased by the $ she paid that is apportioned to Sally.

c$.$ What effect does the apportionment have on Sally's amount realized from the sale?

Sally paid none of the real property taxes and permitted to deduct the apportioned share of : Her amount realized is by this amount.

d$.$ How would the answers in parts $($b$)$ and $($c$)$ differ if Sally paid the taxes?

If Sally paid the taxes, Sally's amount realized would be $ $-$ Kate's adjusted basis would be s