Question

Ann, Bob, Carol, and Denis own a candy store. After a large argument, they decide to dissolve their partnership using the sealed bid method. Ann bids $320,000 for the store, Bob bids $440,000 for it, Carol bids $240,000 for it, and Denis bids $400,000 for it.
Required:
a. What is Bob's fair share?
b. What is Carol's fair share?
c. What is Denis's fair share?

Answer 1

Answer:

Following are the solution to the given points:

Step-by-step explanation:

$Ann=\ 3,20,000\\\\Bob=\ 4,40,000\\\\Carol=\ 240,000\\\\Denis= \ 4,00,000$

Each player's offer divided by the total number of players calculates the fair share

Ann's fair share $= \frac{\ 320,000}{4} = \ 80,000$

Bob's fair share$= \frac{\ 440,000}{4} = \ 110,000$

 Carol's fair share $= \frac{\ 240,000}{4} = \ 60,000$

Denis's fair share $= \frac{\ 400,000}{4} = \ 100,000$

 Because Bob has the highest bid, that receives in the business.

Payments:

 Ann $\ 80,000$ paid by estate

 Bob $= \ 440,000 - \ 110,000 = \ 330,000$ owes estate

 Carol $= \ 60,000$ paid by estate

 Denis $= \ 100,000$ paid by estate  

Surplus $= \ 330,000 - (\ 80,000+\ 60,000+ \ 100,000) = \ 90,000$  

Splitting the equally among the four players. therefore one of the each receives:

$\frac{\ 90,000}{4}= \ 22,500$

The final settlement of the Ann receives:

$= \ 80,000+ \ 22,500 = \ 102,500$