Mr Smith owns a small hardware store and storage area less than a block away from the store. The assessed value of the store is $1M and the storage about $150k, i.e. $1.15M for both. Because Mr Smith is retiring he wants to sell both -- he is willing to sell them for at least $1.10M, i.e. below the assessed value.

He found a buyer, Mr Jones who is interested to buy the store for no more than $990k but he does not care about the storage area.

What is the reservation point for Mr. Smith and what is the bargaining range?