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 value does Chris end the fair division with?
A) $9731
B) $14,250
C) $15,981.25
D) $1731.25

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 value does Chris end the fair division with?
A) $9731
B) $14,250
C) $15,981.25
D) $1731.25

Quizplus · Accepted Answer

Using the Knaster inheritance procedure, we first find the total value of the estate by adding the values of the house, car, and horse:
$35,000 + $50,000 + $48,000 +$3,000 + $2,500 + $2,750 + $6,000 + $5,800 + $6,250 = $157,550
Each person has a claim to 25% of the total value, which is $39,387.50.
We then subtract each person's value of each item from the total value of the item to determine their excess value. For example, Ashley's excess value for the house is $39,387.50 - $35,000 = $4,387.50.
The person with the highest excess value for an item gets that item first. In this case, Brook has the highest excess value for the house, so she gets the house and her excess value of $11,612.50 ($39,387.50 - $27,775) in cash.
Next, we remove the values of the house and the excess value cash from the total value and distribute the remaining items in the same way. After all items have been distributed, we add up the excess value cash received by each person to determine their final share of the estate.
Following this procedure, we get:
- Brook receives the house and $11,612.50 in cash
- Ashley receives the horse and $15,775 in cash
- Chris receives the car and $15,981.25 in cash
- Dana receives $6,018.75 in cash
Therefore, Chris ends the fair division with $15,981.25.

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

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