21. A property was listed for $110,000. It sold for $106,000. A 6.5% fee was split equally between the listing and selling real estate firms. The listing licensee received 55% of the listing office share. How much did the listing licensee receive?
Answer: B
The listing licensee received $1,966.25.
To calculate the amount the listing licensee received, first, determine the total commission based on the selling price and the fee percentage. The total commission is calculated as 6.5% of $106,000, which equals $6,990. This commission is then split equally between the listing and selling firms, resulting in $3,495 for the listing firm. The listing licensee receives 55% of this amount, which totals $1,966.25.
A) $1,894.75
This option is incorrect as it does not accurately reflect the calculations based on the commission split. The commission received by the listing firm and the licensee's share were calculated to be higher than this figure.
B) $1,966.25
This is the correct option as it accurately represents the amount calculated for the listing licensee after determining the total commission from the sale, splitting it between firms, and applying the 55% share to the listing firm's portion.
C) $3,875.00
This option is incorrect because it significantly overestimates the amount received by the listing licensee. The calculations show that the total amount allocated to the listing firm and subsequently to the licensee is much lower.
D) $3,789.50
This option is also incorrect as it exceeds the total commission available to the listing firm. The calculations indicate that the licensee's share is less than this amount after the splits and percentages are applied.
Conclusion
The correct answer is definitively $1,966.25, as it is the only option that accurately reflects the calculated share of the commission for the listing licensee based on the outlined fee structure. All other options fail to align with the computations derived from the total commission and the specified percentage splits.