Lucas writes a check to Paige for $250. The face of the check says, "pay to theorder of Paige." Paige signs the check on the back and heads to the bank.Before Paige gets to the bank, however, Paige loses the check. Paige is not reallyworried, though, because the check is made out to her. If Carla finds the checkand tries to cash it, Carla will:be able to cash the check because it is bearer paper.Xbe able to cash the check because it is order paper.be unable to cash the check because it is bearer paper.be unable to cash the check because it is order paper. Arlene, a minor, buys a stereo from Savannah and signs a promissory note inthe amount of $500 payable to Savannah within six months to cover the cost ofthe stereo. Savannah indorses the promissory note and transfers it to Alvin aspayment for Alvin painting Savannah's house. When Alvin tries to collect thenote from Arlene at the end of the six months, if Arlene refuses to pay:XAlvin will be successful in collecting the payment because he is aholder in due course.Alvin will be successful because he is not a holder in due course.Alvin will be unsuccessful in collecting the payment even thoughhe is a holder in due course.Alvin will be unsuccessful because he is not a holder in duecourse.

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Lucas writes a check to Paige for $250. The face of the check says, "pay to the order of Paige." Paige signs the check on the back and heads to the bank. Before Paige gets to the bank, however, Paige loses the check. Paige is not really worried, though, because the check is made out to her. If Carla finds the check and tries to cash it, Carla will: be able to cash the check because it is bearer paper. X be able to cash the check because it is order paper. be unable to cash the check because it is bearer paper. be unable to cash the check because it is order paper.

Lucas writes a check to Paige for $250. The face of the check says, "pay to the order of Paige." Paige signs the check on the back and heads to the bank. Before Paige gets to the bank, however, Paige loses the check. Paige is not really worried, though, because the check is made out to her. If Carla finds the check and tries to cash it, Carla will: be able to cash the check because it is bearer paper. X be able to cash the check because it is order paper. be unable to cash the check because it is bearer paper. be unable to cash the check because it is order paper.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter1: An Introduction To Taxation And Understanding The Federal Tax Law

Section: Chapter Questions

Problem 14DQ

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