Responsible for paying the building real estate taxes


Tell, Inc. leased a building from Lott Corp. Tell paid montly rent of $500 and was also responsible for paying the building's real estate taxes. On January 1, Vorn Co. and Tell entered into an agreement by which Vorn was entitled to occupy the building for the remainder of the term of Tell's lease in exchange for monthly payments of $600 to Tell. For the year, neither Tell nor Vorn paid the building's real estate taxes, and the taxes are deliquent. Learning this, Lott demanded that either Tell or Vorn oay the deliquent taxes. Both refused, and Lott has commenced an action against them.. Lott will most likely prevail against

A) Vorn but not Tell because the lease was assigned to it

B) Tell and Vorn because they are jointly and severally liable for the deliquent taxes

C) Tell without Vorn because their Jan 1 agreement constituted a sublease

D) Vorn but only to the extent of 100 for each month that it occupied the building during the year

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Accounting Basics: Responsible for paying the building real estate taxes
Reference No:- TGS091597

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