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On May 1 5 , 2 0 2 3 , Eric Martin signed a contract to purchase a rental house for $ 1 9 5
On May Eric Martin signed a contract to purchase a rental house for $ Closing is to occur on June with the day of closing to be counted as a day of ownership by the buyer. Eric can assume the sellers first mortgage, which will have a balance of $ during June. The seller, Reuben Smith, has agreed to take a second mortgage of $ as part of the payment at closing. Eric paid an escrow deposit of $ when he signed the purchase contract. Other pertinent facts include:On May Eric Martin signed a contract to purchase a rental house for $ Closing is to occur on June with the
day of closing to be counted as a day of ownership by the buyer. Eric can assume the seller's first mortgage, which will have a balance
of $ during June. The seller, Reuben Smith, has agreed to take a second mortgage of $ as part of the payment at
closing. Eric paid an escrow deposit of $ when he signed the purchase contract. Other pertinent facts include:
a The June interest on the first mortgage is $ which will be paid at the end of the month.
b Reuben paid a hazard insurance policy for the calendar year The premium was $ and Eric has agreed to purchase
Reuben's interest in the policy.
c The monthly rental of $ has been collected by Reuben for June.
d The total amount of property tax for is estimated to be $ The tax will be paid by Eric at the end of the year.
e The broker will pay the following expenses for Reuben and will be reimbursed at the closing:
f The broker will also pay the following expenses for Eric and will be reimbursed at the closing:
Required:
How will the items be prorated between the seller and buyer?
Note: Do not round intermediate calculations and round your final answers to decimal places.
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