Vince sold his property to Paula with a possession and adjustment date of May 1. Vince has not yet received his current year's tax notice, but last year's taxes were $847.00. Paula's lawyer feels taxes will increase 20%. Which of the following is correct?
A)Paula should be given a credit for the estimated taxes between May 1 and December 31.
B)Vince should be charged the estimated taxes from January 1 to April 30.
C)There is no way to attempt a tax adjustment until the actual bill arrives.
D)The taxes will appear as a debit on Paula's statement of adjustment and a credit on Vince's statement of adjustment.