The seller and the buyer finally agreed to a purchase price of $203,500 with the closing to occur on June 15. The taxes for the year in the amount of $2,500 have not been paid by the seller. How much would the tax proration amount to, and how would it appear on a full settlement statement?
A) $1,130.14 debit the seller and credit the buyer.
B) $1,130.14 debit the buyer and credit the seller.
C) $2,500 credit the seller and debit the buyer.
D) Nothing. The seller does not owe since the buyer is buying.
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