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Sally owns real property for which the annual property taxes are $9,000. She sells the property to Kate on March 9, 2022, for $550,000. 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 $ X and Kate can deduct \$\$ X of the property taxes. Feedback T Check My Work The term sale or other disposition is defined broadly in the tax law and includes virtually any disposition of property. Re the difference between the amount realized from the sale or other disposition of property and the property's adjusted disposition. The amount realized from a sale or other disposition of property is a measure of the economic value receive given up. 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 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. Feedback T Check My Work incorrect d. How would the answers in parts (b) and (c) differ if Sally paid the taxes? f Sally paid the taxes, Sally's amount realized would be $ Kate's adjusted basis would be Feedback 7 Check My Work Incorrect