Question

A building sold for $157,000 The broker's commisssion was 6% and was divided as follows: 10% to the listing person 50% of the balance to the selling broker. What was the listing booker's commission?

A. 1064
B. 942
C. 1124
D. 964

Answer 1

The correct answer is option B. $942.

Step-by-step explanation:

To determine the listing broker's commission for the sale of a building, we need to calculate 6% of the $157,000 sale price, which represents the total broker's commission. Then, we need to calculate 10% of this commission for the listing person and 50% of the remaining balance for the selling broker.

First, calculate the total commission:

• Total Commission = Sale Price x Commission Rate
• Total Commission = $157,000 x 0.06
• Total Commission = $9,420

Now, calculate the listing person's commission:

• Listing Person's Commission = Total Commission x Listing Person's Share
• Listing Person's Commission = $9,420 x 0.10
• Listing Person's Commission = $942

Therefore, the listing broker's commission is $942, which corresponds to option B.