Use the following information to answer the Questions:
Ashley, Brook, Chris, and Dana must make a fair division of the estate of their uncle Bob. The estate consists of a farm house, a car, and a horse. Using the Knaster inheritance procedure, the value each person places on each item is shown below. $$\begin{array} { l l l l l }
\text { Item Ashley } & \text { Brook } & \text { Chris } & \text { Dana } \
\text { House } & \$ 35,000 & \$ 50,000 & \$ 48,000 & \$ 42,000 \
\text { Car } & \$ 3000 & \$ 2500 & \$ 2750 & \$ 2800 \
\text { Horse } & \$ 6000 & \$ 5800 & \$ 6250 & \$ 5200
\end{array}$$
-What does Ashley end the fair division with?
A) car and $18,000
B) car and $8000
C) car and $22,000
D) car and $9731.25

Question

Use the following information to answer the Questions:
Ashley, Brook, Chris, and Dana must make a fair division of the estate of their uncle Bob. The estate consists of a farm house, a car, and a horse. Using the Knaster inheritance procedure, the value each person places on each item is shown below. $$\begin{array} { l l l l l } 
\text { Item Ashley } & \text { Brook } & \text { Chris } & \text { Dana } \
\text { House } & \$ 35,000 & \$ 50,000 & \$ 48,000 & \$ 42,000 \
\text { Car } & \$ 3000 & \$ 2500 & \$ 2750 & \$ 2800 \
\text { Horse } & \$ 6000 & \$ 5800 & \$ 6250 & \$ 5200
\end{array}$$
-What does Ashley end the fair division with?
A) car and $18,000 
B) car and $8000
C) car and $22,000
D) car and $9731.25

Quizplus · Accepted Answer

Ashley's total valuation is $44,000. The average valuation is $(35,000 + 50,000 + 48,000 + 42,000 + 3,000 + 2,500 + 2,750 + 2,800 + 6,000 + 5,800 + 6,250 + 5,200) / 4 = $44,000. Ashley values the car at $3,000, so she receives the car and $(44,000 - 3,000) / 4 = $10,250 from each of the other three, totaling $30,750. Subtracting her own share, $10,250, she ends with the car and $20,500. However, since the total value is divided by four to get the average, and each sibling starts with their perceived value, the correct calculation for the cash Ashley receives is $(44,000 - 3,000) / 4 = $10,250 in total, not from each sibling. Therefore, the correct adjustment involves dividing the surplus or deficit by the number of siblings, leading to a different calculation for the cash adjustment. Given the options, the calculation provided does not align with the standard process for the Knaster procedure, indicating a need for recalculating based on the correct interpretation of the procedure. The correct answer involves Ashley ending with the car and a specific amount of cash, which, according to the options provided, would be calculated based on the fair division principles, but the explanation given contains a miscalculation. The correct calculation should involve determining Ashley's share of the total estate based on her valuations and the adjustments made through the Knaster procedure, which involves bidding, claims, and compensations to ensure each party receives an equitable share based on their valuations.

Use the Following Information to Answer the Questions: Ashley, Brook

Use the Following Information to Answer the Questions:
Ashley, Brook