Answer:
Following are the solution to the given points:
Step-by-step explanation:
[tex]Ann=\$3,20,000\\\\Bob=\$4,40,000\\\\Carol=\$240,000\\\\Denis= \$4,00,000\\\\[/tex]
Each player's offer divided by the total number of players calculates the fair share
Ann's fair share [tex]= \frac{\$320,000}{4} = \$80,000\\\\[/tex]
Bob's fair share[tex]= \frac{\$440,000}{4} = \$110,000\\\\[/tex]
Carol's fair share [tex]= \frac{\$240,000}{4} = \$60,000\\\\[/tex]
Denis's fair share [tex]= \frac{\$400,000}{4} = \$100,000\\\\[/tex]
Because Bob has the highest bid, that receives in the business.
Payments:
Ann [tex]\$80,000[/tex] paid by estate
Bob [tex]= \$440,000 - \$110,000 = \$330,000[/tex] owes estate
Carol [tex]= \$60,000[/tex] paid by estate
Denis [tex]= \$100,000[/tex] paid by estate
Surplus [tex]= \$330,000 - (\$80,000+\$60,000+ \$100,000) = \$90,000[/tex]
Splitting the equally among the four players. therefore one of the each receives:
[tex]\frac{\$90,000}{4}= \$22,500[/tex]
The final settlement of the Ann receives:
[tex]= \$80,000+ \$22,500 = \$102,500[/tex]
