Question 2

Buyer credit is $260.

The buyer will receive a credit of $260 for the prepaid rent, as the seller is responsible for the closing day on September 17. This calculation is based on the number of days the buyer will occupy the property after closing.

A) $340

Option A is incorrect because it overestimates the buyer's credit. The calculation of the credit must account for the number of days the buyer will be responsible for the rent after the closing date, which is not enough to equate to $340.

B) $320

Option B is also incorrect because it does not reflect the proper prorating of the prepaid rent. The rent credit should be based on the actual days of occupancy after closing, which does not support a credit of $320.

C) $280

Option C is incorrect as it miscalculates the buyer's share of the prepaid rent. The credit should only cover the days the buyer is responsible for, and $280 exceeds that amount, failing to accurately prorate the rent.

D) $260

Option D is correct as it accurately reflects the buyer's credit calculated from the prepaid rent of $600 for the days of occupancy after the closing date. This figure takes into account the seller's responsibility for the closing day and the prorated days.

Conclusion

The correct answer, $260, is based on the appropriate calculation of prepaid rent and the seller's responsibility on the closing day. Options A, B, and C incorrectly estimate the buyer's credit by miscalculating the prorated rent, demonstrating a lack of understanding of how credits work in real estate transactions. Thus, $260 is the only accurate reflection of the buyer's credit for the prepaid rent.