You work for ABC Realty in Omaha, where you recently representeda client as a buyer’s...

You work for ABC Realty in Omaha, where you recently represented a client as a buyer’s exclusive agent. The buyer purchased a $350,000 house, where the listing agreement specified that a 6% commission would be paid at closing.

a)What is the total commission paid by the seller at closing?

b)What is the commission due to ABC Realty if the seller/buyer broker split is 60/40 (60% to seller’s broker, 40% to buyer’s broker)?

c)What commission will you receive if you have a 65% split with your broker?

Solutions

Expert Solution

a. total commission paid by the seller = house price * commission

total commission paid by the seller = 350000 * 6%

Total commission paid by the seller = $21000

b. Commission due to ABC Realty = Commission Amount * 40%

Commission due to ABC Realty = 21000 * 40%

Commission due to ABC Realty = 8400

c. commission we receive if 65% split with broker = Commission received by ABC realty * (1 - Broker %)

commission we receive if 65% split with broker = 8400 * (1 - 0.65)

commission we receive if 65% split with broker = $2940

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

You work for ABC financial management. Your client is XYZ company. The CEO contacts you directly...

You work for ABC financial management. Your client is XYZ company. The CEO contacts you directly on the 1st July, thanking you for the satisfaction of current objectives in line with the financial plan. Current objectives are reporting annual financial reports including preparing the BAS. The client asks that this now ceases as the finance officer will take over the duties. The client asks that you prepare a manual to assist the finance officer in their new duties. The client...

You are advising a client who runs a Common Interest Realty Association (Home Owner's Association). The...

You are advising a client who runs a Common Interest Realty Association (Home Owner's Association). The client is not familiar with the presentation of the HOA's financial statement and has asked you for a little bit of assistance. The client heard from another person that runs an HOA that there are additional disclosures that are required in the association's financial statements. The client is asking for your assistance as you specialize in realty type organizations. What are the additional disclosures...

A client of your financial consulting firm, Omaha manufacturing company, is considering a new investment proposal...

A client of your financial consulting firm, Omaha manufacturing company, is considering a new investment proposal that involves manufacturing and selling bright blue self driving taxi cabs. You are asked to create the NPV analysis. Your client has assembled the following information. A new machine will have to be purchased today (Year0) at a cost of $120,000. It will generate revenues all of which are taxable, expected to be $265,000, $240,000, $215,000 in each of the 3 years (year 1,2,and...

Select two of the UCC mandated buyer’s remedies and given an example of a situation where...

Select two of the UCC mandated buyer’s remedies and given an example of a situation where the remedies would apply.

The ABC Company, a client of your firm, has come to you with the following problem....

The ABC Company, a client of your firm, has come to you with the following problem. it has three clerical employees who must perform the following functions: Maintain the general ledger Maintain the accounts receivable ledger Issue credits on returns and allowances Reconcile the bank account Handle and deposit cash receipts Assuming equal abilities among the three employees, the company asks you to assign the five functions to them to maximize internal control. Assume that these employees will perform no...

Describe an IT company where you now work, planning to work or did work. Write a...

Describe an IT company where you now work, planning to work or did work. Write a summary about how information systems were used in each step of the value chain.

Consider where you currently work, where you have previously worked, or a well-known company where you...

Consider where you currently work, where you have previously worked, or a well-known company where you would like to work. How would this company use the master budgeting process? What budgets would be included in their master budget? Which employees would use the various parts of the master budget? Explain.

Consider where you currently work, where you have previously worked, or a well-known company where you...

Consider where you currently work, where you have previously worked, or a well-known company where you would like to work. How would this company utilize variance analysis? What variances do you think would be most significant to the company?

Consider where you currently work, where you have previously worked, or a well-known company where you...

Consider where you currently work, where you have previously worked, or a well-known company where you would like to work. How might this company make capital investment decisions? What capital investment decisions do you see evidence of at this company? Explain. A MINIMUM OF 150 WORDS, PLEASE.

Consider where you currently work, where you have previously worked, or a well-known company where you...

Subjects