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 fo the property.
2 Expense 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 created for road development.
Disagreement arose regarding how to split the final proceeds from this initial sale, leading to five proposed scenarios raised by 5 children.
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?
The link is attached for the workings
https://1drv.ms/x/c/4ac6cf5129cd6403/EfCPVw25HgJNnKEriUpmOcIBg6XhYGNAe3bbBSbd-UQHBQ?e=gqmDK4
