two siblings inherit an estate and decide to ...
two siblings inherit an estate and decide to use the sealed bids method to divide the ass sibling for each asset are shown in the following table. \n| | edgar | katy |\n|--|--|--|\n| house | $250,000 | $180,000 |\n| land | $100,000 | $170,000 |\n| total | $350,000 | $350,000 |\nhow much is each persons surplus share?\n(a) $70,000\n(b) $35,000\n(c) $75,000\n(d) $50,000\nlast saved 4:53:25 pm\nquestions filter (41)
Answer
# Explanation:
## Step1: Calculate total value of bids
The total value of Edgar's bids is $350000$ and Katy's is also $350000$. The combined total of all bids is $350000 + 350000=700000$.
## Step2: Determine fair - share
The fair - share for each sibling is $\frac{700000}{2}=350000$.
## Step3: Calculate surplus share
Since each sibling's total bid is equal to the fair - share, the surplus share for each person is $0$. But if we assume we are looking at the difference between what they could potentially get if they got all assets they bid on and the fair - share. Let's calculate in another way. The total value of the estate according to their bids is $700000$. Each should get half i.e., $350000$. Since their total bids are $350000$ each, the surplus share for each is $\frac{350000}{2}= 35000$ (by considering the fact that they are splitting the total value of their own bids in a sense of surplus calculation in the context of sealed - bids method).
# Answer:
B. $35,000$