Questions: Four heirs (A, B, C, and D) must fairly divide an estate consisting of two items - a house and a car the method of sealed bids. The players' bids (in dollars) are: A B C D --------------- House 240000 239000 232000 234000 Car 30000 35000 34000 31000 The original fair share of A is worth: 68750 In the initial allocation, player A: Select an answer and Select an answer the estate After all is said and done, in the final allocation, player A: Select an answer and Select an answer the estate

Four heirs (A, B, C, and D) must fairly divide an estate consisting of two items - a house and a car the method of sealed bids. The players' bids (in dollars) are:

   A  B  C  D 
---------------
 House  240000  239000  232000  234000 
 Car  30000  35000  34000  31000 

The original fair share of A is worth:  68750 

In the initial allocation, player A:
Select an answer and Select an answer the estate 

After all is said and done, in the final allocation, player A:
Select an answer and Select an answer the estate
Transcript text: Four heirs (A, B, C, and D) must fairly divide an estate consisting of two items - a house and a car the method of sealed bids. The players' bids (in dollars) are: \begin{tabular}{|c|r|r|r|r|} \hline & \multicolumn{1}{|c|}{ A } & \multicolumn{1}{c|}{ B } & \multicolumn{1}{c|}{ C } & \multicolumn{1}{c|}{ D } \\ \hline House & 240000 & 239000 & 232000 & 234000 \\ \hline Car & 30000 & 35000 & 34000 & 31000 \\ \hline \end{tabular} The original fair share of $A$ is worth: $\$$ 68750 $\square$ In the initial allocation, player A: Select an answer and Select an answer $\square$ the estate \$ $\square$ After all is said and done, in the final allocation, player A: Select an answer $\square$ and Select an answer $\square$ the estate $\$$ $\square$
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Solution

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Solution Steps

Step 1: Calculate Total Estate Value

The total estate value is calculated by summing the highest bids for each item, resulting in $275000.

Step 2: Determine Fair Share

Each heir's fair share is determined by dividing the total estate value by the number of heirs, resulting in $68750 per heir.

Step 3: Initial Allocation

Heir 1 initially receives items 1 with a total value of $240000. Heir 2 initially receives items 2 with a total value of $35000. Heir 3 initially receives items with a total value of $0. Heir 4 initially receives items with a total value of $0.

Step 4: Adjustments for Fairness

Heir 1 has exceeded their fair share by $171250 and may need to compensate others. Heir 2 requires an additional $33750 to reach their fair share. Heir 3 requires an additional $68750 to reach their fair share. Heir 4 requires an additional $68750 to reach their fair share.

Final Answer:

The final allocation, after adjustments, ensures that each heir receives a value as close as possible to their fair share. This may include items initially allocated and monetary compensation for fairness.

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