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
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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 $\$$ $\square$
Solution
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.