Exercise 14-16 (Algorithmic) (LO. 1) Sally owns real property for which the annual property taxes are $18,530. She sells the property to Kate on April 2, 2019, for $926,500. Kate pays the real property taxes for the entire year on October 1, 2019. 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 $ 4,671 x and Kate can deduct $ 13,859 x of the property taxes. Feedback Check My Work 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 $ 4,671 x she paid that is apportioned to Sally. Feedback Check My Work c. What effect does the apportionment have on Sally's amount realized from the sale? permitted to deduct the apportioned share of $ 4,671 x. Her amount Sally paid none of the real property taxes and is realized is increased by this amount. Feedback Check My Work d. How would the answers in parts (b) and (c) differ if Sally paid the taxes? are con 912,641 x. Kate's adjusted basis would be If Sally paid the taxes, Sally's amount realized would be $ $ 912,641 x