Accounting calculation-Property Share

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A family owns a 33,000 square foot undivided property in a central location. The mother and her five children agree on a legal agreement for selling the property with the following terms:

  1. Mother's Share: The mother will receive a fixed amount of $25,000 and the sale proceeds from a designated 1,000 square feet of the property.
  2. Expenses and Profits: All children will share equally any expenses incurred during the selling process. Likewise, the remaining sale proceeds after deducting expenses will be divided equally among children.

A buyer offers to purchase 13,000 square feet of the property at $.17 per square foot, which everyone agrees to. (Note: The selling price for the remaining property might differ.)

The family spends $2,200 on selling expenses specifically related to this 13,000 square foot sale. Additionally, due to the property's location, 1,200 square feet need to be ceded for road development.

Disagreements arise regarding how to split the final proceeds from this initial sale, leading to five proposed scenarios.

The question is: Which scenario best aligns with the initial agreement, or are all scenarios inaccurate? Is there an alternative scenario that perfectly reflects the agreement's terms?

A family owns a 33,000 square foot undivided property in a central location. The mother and her five children agree on a legal agreement for selling the property with the following terms:

  1. Mother's Share: The mother will receive a fixed amount of $25,000 and the sale proceeds from a designated 1,000 square feet of the property.
  2. Expenses and Profits: All children will share equally any expenses incurred during the selling process. Likewise, the remaining sale proceeds after deducting expenses will be divided equally among children.

A buyer offers to purchase 13,000 square feet of the property at $.17 per square foot, which everyone agrees to. (Note: The selling price for the remaining property might differ.)

The family spends $2,200 on selling expenses specifically related to this 13,000-square-foot sale. Additionally, due to the property's location, 1,200 square feet need to be ceded for road development.

Disagreements arise regarding how to split the final proceeds from this initial sale, leading to five proposed scenarios.

The question is: Which scenario best aligns with the initial agreement, or are all scenarios inaccurate? Is there an alternative scenario that perfectly reflects the agreement's terms?

A family owns a 33,000-square-foot undivided property in a central location. The mother and her five children agree on a legal agreement for selling the property with the following terms:

  1. Mother's Share: The mother will receive a fixed amount of $25,000 and the sale proceeds from a designated 1,000 square feet of the property.
  2. Expenses and Profits: All children will share equally any expenses incurred during the selling process. Likewise, the remaining sale proceeds after deducting expenses will be divided equally among children.

A buyer offers to purchase 13,000 square feet of the property at $.17 per square foot, which everyone agrees to. (Note: The selling price for the remaining property might differ.)

The family spends $2,200 on selling expenses specifically related to this 13,000-square-foot sale. Additionally, due to the property's location, 1,200 square feet need to be ceded for road development.

Disagreements arise regarding how to split the final proceeds from this initial sale, leading to five proposed scenarios.

The question is: Which scenario best aligns with the initial agreement, or are all scenarios inaccurate? Is there an alternative scenario that perfectly reflects the agreement's terms?

Sl.NO. Description  1st Senario     2nd Senario     3rd Senario     4th Senario     5th Senario 
1 Rate per Sq Feet                       17.00                         17.00                         17.00                         17.00                         17.00
  Total Sq Feets              33,000.00                33,000.00                31,800.00                33,000.00                31,800.00
  Total Value           561,000.00             561,000.00             540,600.00             561,000.00             540,600.00
  Expenses Incurred                    2,200.00                  2,200.00                  2,200.00                  2,200.00
  Net receivable value           561,000.00             558,800.00             538,400.00             558,800.00             538,400.00
                     
                     
2 Selling Cents              13,000.00                13,000.00                13,000.00                13,000.00                13,000.00
  Contributed to Road                1,200.00                  1,200.00            
  Total removing  Area              14,200.00                14,200.00            
  Total Value to be removed           241,400.00             240,453.33             220,100.63             220,133.33             220,100.63
                     
                     
                     
3 Moms Value              25,000.00                25,000.00                25,000.00                25,000.00                25,000.00
  1000 Sq Feet Value              17,000.00                17,000.00                17,000.00                17,000.00                17,000.00
  Total portion Value              42,000.00                42,000.00                42,000.00                42,000.00                42,000.00
                     
4 Selling area in Sq Feet              13,000.00                13,000.00                13,000.00                13,000.00                13,000.00
  Value to be receivable           221,000.00             221,000.00             221,000.00             221,000.00             221,000.00
  Expenses incurred till date                2,200.00                  2,200.00                  2,200.00                  2,200.00                  2,200.00
  Balance Value           218,800.00             218,800.00             218,800.00             218,800.00             218,800.00
                     
                     
5 Moms Share              16,545.45                18,001.85                17,169.81                16,480.57                17,099.94
                     
6 Individual Share for Children              40,450.91                40,159.63                40,326.04                40,463.89                40,340.01

 

 

 

 

Replies (6)

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By paul.benny
09th Jun 2024 18:36

This site isn't a service for providing homework answers.

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Replying to David Ex:
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By FactChecker
09th Jun 2024 22:39

Just got around to following your link ... well done, but how do you find 'em?

N.B: I see that one was posted by Sunil Lancy ... so different person or just another 'name' for the bot?

Anyway, an even greater dearth of 'help' was provided at the other site!

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Replying to FactChecker:
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By David Ex
10th Jun 2024 10:58

FactChecker wrote:

Just got around to following your link ... well done, but how do you find 'em?

Think I just Googled the first sentence as it had the hallmarks of a homework question!

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By FactChecker
09th Jun 2024 19:02

If you want someone else to do your homework for you, it might be an idea to try a site that isn't for UK accountants ... or of course you could simply do your own homework.

BTW your AI is broken ... most of your post is repeated word-for-word three times!
If you don't care about the quality of your question then the same is presumed to apply to any answers.

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By bettybobbymeggie
10th Jun 2024 13:25

And the award for the longest post goes to....

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