Question

Mrs. Jones owns 4/7 of the stock in a small business and Mrs.Brown owns the rest. Mrs. smith agrees to give $21,000 in exchange for 1/3 of the stock. The $21,000is to be divided between Mrs. jones and Mrs. Brown so that all three will now have equal share of stock. How much of the $21,000 should Mrs. Jones receive?

Answer 1

4/7 = 36/63
3/7 = 27/63
1/3 = 21/63

So, Jones sells 15/63 and Brown sells 6/63 for a total of 21/63, or 1/3.

So, the $21000 is divided
$15000 to Jones
$6000 to Brown