HELPPPPPPP TRICKY QUESTION!!! please?

Question

HELPPPPPPP TRICKY QUESTION!!! please

Buck and Henry bought three horeses of equal value $840. Buck contributed $450 and Henry conributed $390. By the end if the day, they had sold one horse $840 and decided to end their partnership. How should they divide the money fairly if Henry keeps the two horses? Explain.

Answer 1

OK

Buck's % of the partnership is 450/840 = 53.6%
Henry's % of the partnership is 390/840 = 46.4%

They buy 3 horses and spend all the money.
They sell one horse and have 2 horses remaining.

The key is how you value the horses. If you value the horses at cost, each horse is worth $280 (1/3 of the original $840).

If you value them at what you could sell them, they would be worth 840 each. However, there is no guarentee you could get $840. SO, you have to cost them at their original cost which is $280.

So the partnership has a 2 horses worth $280 each and $840 in cash. Total partnership is worth $1400. If they split the partnership in the original %'s, Buck get 53.6% of $1400 = $750.40 and Henry should get 46.4% of $1400 or $649.60

Henry wants the two horses @ $280 a piece or $560. If Buck gives him $89.60, Henry would have $649.60 worth of the $1400 partnership (his share). Buck would also still have $750.40.

The key issue is how they value the horses. If the value the horses at more than the original cost, then they would need to agree what their value is and divy up the money based upon the horse value they decide upon.

Hope this helps.

Answer 2

The problem boils down to the basis for the cost of the horses that Henry keeps. If the horse is allocated on the basis of initial cost, each horse he has is worth $ 280.

Partnership starts: Buck 450 Henry 390
Partnership ends: $ 840 + $ 560 (fair value of horses) = $ 1400
If the $1400 was purely cash, based on their respective investments, Buck would get $750 and Henry $650. Factoring in the horse value, Henry gets 2 horses and $90. Buck get the $750.

Answer 3

Let's take the money they sold the horse for and divide based on what each contributed. That means that Buck gets $450 back, and Henry gets $390 back.

Now they have two horses. If Henry wants them, he should buy them from Buck. Since they paid $280 per horse, Henry doesn't have enough money to buy them both from Buck. If Buck thinks he can sell them at a profit, maybe he'll consider selling them to Henry for the $390 that Henry has.

That means that Henry ends the day with two horses, for which he paid $195 apiece.

Buck ends the day with $840, or $390 more than he started the day with.

Answer 4

answer = henry takes $90 and buck $750



bought 3 horses, each $280

shares btw buck : henry
= 450 : 390
= 15 : 13

sold 1 horse, they had assets worth
2*280 = 560 (in horses)
and
840 (in cash from horse dealing)
with a total of 1400$.

to end their partnership fairly, they should get back by the same fraction they gave initially. henry should get 13/28 and buck 15/28.

henry : buck
= 13 : 15
= 13*1400/28 : 15*1400/28
= 650 : 750

henry took the 2 horses, already worth $560 in them. but he should take with him another (650 - 560) = $90 from the money they made selling 1 horse. buck will take the rest of the money, (840 - 90) = $750, as befitting his initial shares of 15/28.

Answer 5

Well, Henry bought about 1 and 1/3 horses at the beginning. Right... anyways, that means Buck should get all the money, because Henry didn't pay for 2 horses, but he got 2 horses anyways. Theoretically, Henry would still owe Buck some money.

Answer 6

Henry gets the horses
Buck gets the money
That's a fair trade if u ask me
Wat horrible businessmen they are though
I hope they did not haggle

Answer 7

So they sold one horse for the price they bought three for?