What is the right cost to calculate transfer of shares costs

[ankit17sharma]

tom and Harry build two houses together in whichTom's profit share is 65%
Harry's profit share is 35%


Tom buys house 1 @1005000
Harry buys house 2 @955000


To make the share 50 - 50 at what cost should Harry buy 15% of tom's shares.


Option I
Cost of 100 shares equals 196000 with each share @19600 hence Harry should pay Tom 19600X15 =294000


Option II
Tom's share in total price = 1274000 (65% of 1960000) he already bought house 1 @ 1005000 . Harry should pay Tom 1,274,000-1005000=269,000

 

[Ishuda]

tom and Harry build two houses together in whichTom's profit share is 65%
Harry's profit share is 35%


Tom buys house 1 @1005000
Harry buys house 2 @955000


To make the share 50 - 50 at what cost should Harry buy 15% of tom's shares.


Option I
Cost of 100 shares equals 196000 with each share @19600 hence Harry should pay Tom 19600X15 =294000


Option II
Tom's share in total price = 1274000 (65% of 1960000) he already bought house 1 @ 1005000 . Harry should pay Tom 1,274,000-1005000=269,000

Both Option I and Option ii are correct in some weird sort of way.
IF 15% were the correct amount Harry should receive to change the proportion to 65% / 35% then Option 1 would be the proper calculation.

However, Tom needs to pay 65% of the $196K and has already paid about 51.276% whereas Harry has already paid about 48.724%. So Tom needs to pay Harry about 13.724% which is the same amount calculated in Option II and the correct way to look at the problem.

Thus, to make the cost 50-50 follow the same procedure as Option II

EDIT: Correct numbers