Four heirs (A, B, C, and D) must fairly divide an estate consisting of two items

Question

Four heirs (A, B, C, and D) must fairly divide an estate consisting of two items a a house and a car using the method of sealed bids. The players' bids (in dollars) are House 238000 239000 231000 235000 Car 35000 31000 29000 30000 The original fair share of A is worth: In the initial allocation, player A: and Select an answer the estate S Select an answer After all is said and done, in the final allocation, player A: and Select an answer the estate S Select an answer Points possible: 1 This is attempt 1 of 3.

Explanation / Answer

Hi. Chegg Allows us to solve 1 question at a time. I am giving the answer to Q1. Kindly repost the other one as a separate question.

The given data is as follows

The original Fair Share of A is worth $68250

In the initial Allocation Player A gets the house and the car (Total worth of 273000). But since A's worth is $68250 only, he pays the difference 273000-68250 = $204750 to the estate.

From this estate, the fair share of the remaining (B,C and D) is paid out and surplus is found i.e 204750-67500-65000-66250 = 6000(Surplus).

This surplus is divided amongst the four = 6000/4 = $1500

Therefore in the initial allocation Player A gets the house and the car and pays the estate $204750

After all is said and done Player A gets the house and the car and gets $1500 from the estate.

House Car Total Fair Share A 238000 35000 273000 68250 B 239000 31000 270000 67500 C 231000 29000 260000 65000 D 235000 30000 265000 66250

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