Aubrey owns an office supply store. She borrowed $100,000 from U.S. Bank ("USB") and executed a security agreement granting a security interest in "all of my presently- owned and after-acquired inventory" to USB. USB properly filed a financing statement to perfect its interest. Without notifying USB, Aubrey sold a computer from her inventory to Nissa for use in her home. Does USB have priority over Nissa with respect to the computer purchased by Nissa? Explain.

Aubrey owns an office supply store. She borrowed $100,000 from U.S. Bank ("USB") and executed a security agreement granting a security interest in "all of my presently- owned and after-acquired inventory" to USB. USB properly filed a financing statement to perfect its interest. Without notifying USB, Aubrey sold a computer from her inventory to Nissa for use in her home. Does USB have priority over Nissa with respect to the computer purchased by Nissa? Explain.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 24P

See similar textbooks

Similar questions

Joanna takes a security interest in the equipment in Jason Store and files a financing statement claiming “equipment and all after acquired equipment.” Berkeley later sells Jason Store a cash register, taking a security interest in the register, and (a) files nine days after Jason receives the register or (b) files twenty-five days after Jason receives the register. If Jason fails to pay both Joanna and Berkeley and they foreclose their security interests, who has priority on the cash register? Explain.
Due to his debt to Chur, Schwyz wrote a promissory note which is payable to the order of Chur. Chur's sister, Sion, misrepresenting herself as agent of Chur, obtained the note from Schwyz. Sion then negotiated the note to Lausanne after forging the signature of Chur. May Lausanne enforce the note against Schwyz? a. Yes, since Schwyz is the principal debtor. b. No, since it is Chur who can enforce it, the note being payable to the order of Chur. c. No, since the signature of Chur was forged. d. Yes, since Schwyz, as maker, is primarily liable on the note.
Frankfurt delivers two refrigerators to the warehouse of Duisburg who then issues a negotiable receipt undertaking the delivery of the refrigerators to "Frankfurt or bearer." Frankfurt entrusted the receipt to Leipzig for safekeeping only. Leipzig negotiated it, however, to Stuttgart who bought it in good faith and for value. Who is entitled to the delivery of the refrigerators? a. Frankfurt, since he is the real owner of the refrigerators. b. Stuttgart, since he is a purchaser in good faith and for value. c. Leipzig, since T entrusted the receipt to him. d. Duisburg, since he has as a warehouseman a lien on the goods.
The Double Diamond Ranch has assets of $3,000,000 and liabilities of $8,000,000. The owner of the Double Diamond has decided to make a general assignment for the benefit of creditors to satisfy a portion of the liabilities. This arrangement will provide A) Equal payments to all creditors. B) Equal payments to the creditors consenting to the arrangement. C) Pro rata payments to the creditors consenting to the arrangement. D) Pro rata payments to all creditors. Beryl Barkam is starting a new business, Barkam Enterprises, which will be a sole proprietorship selling retail novelties. Barkam recently received a discharge in a Chapter 7 bankruptcy case, but certain proved claims were unpaid for lack of funds. Which of the following would be a claim against Barkam? O C) A personal loan by her father made in an attempt to stave off bankruptcy. A) The unpaid amounts owed to secured creditors who received less than the full amount after resorting to their security interests. B) The unpaid…
Doe purchased an automobile from Jones for $1,000. Unknown to Doe, Jones had used the automobile as security for a loan from his bank, and the bank had registered its security interest in the automobile under the provincial personal property security registration legislation. A few months after the sale, Jones defaulted on the loan, and the bank discovered that Doe was in possession of the automobile. The bank is not entitled to seize the automobile, because it had not given Doe notice of its claim against the vehicle before Doe purchased it. True False
Her bank advisor has told Ursula, a sole trader, that to obtain a loan for her busness she will need to give a written personal gustarice for the business's debts, and to give the bank a charge over the business's assets. Ursula has no personal assets or income separate from her business. Ursula is unsure about whether to go ahead, and she has made a comment in relation to each requirement(1) I already own all the business's assets and labilities so a written guarantee is not necessary if the bank wishes to ensure that I am personally committed to repaying the loan (2) I can give the bank a Bloating charge, so that if I breach the terms of the loan the bank can take action to sell my inventoryidentify whether Ursula's comments are accurate or not accurateA. (1) Accurate; (2) Not accurateB. (1) Not accurate; (2) AccurateC. (1) Accurate; (2) Accurate;D. (1) Not accurate; (2) Not accurate;
Jane, a partner in a CPA firm, borrows money from one of her firm's audit clients. She is a covered member with respect to this client. For which type of loan may Jane borrow from the client and not impair her independence? A.) She uses the money to help her parents B.) She purchases a home that will be her primary residence C.) She uses the money to obtain a master's degree D.) She purchases an automobile, which is collateral for the loan
An internet investment club asks Jose, a successful stockbroker, to advise its members. The club allows Jose to set up an account with a brokerage firm and gives Jose control of the account, but does not authorize Jose to withdraw funds for his own benefit. Jose, however, uses the money in the account to repay personal loans. He intends to return the money at some point in the future. Jose is charged with embezzlement. Is Jose guilty of embezzlement? Why or why not?
During 2020, Jackie sent her brother Junnie $2,500 via a telegraphic transfer through El Banco Prieto. The bank’s remittance clerk made a mistake and credited Junnie with $250,000 which he promptly withdrew. The bank demanded the return of the mistakenly credited excess, but Junnie refused to do so. The BIR entered the picture and investigated Junnie. Would the BIR be correct if it determines that he earned a taxable income under the facts? No, it was not her fault that the funds in excess of $2,500 were credited to him. Yes, income is a taxable income regardless of the source No, he had no income because he had no right to the mistakenly credited funds. No, the funds in excess of $2,500 were in effect donated to her.
Tom gave his daughter, Nicole, permission to access his business account online but not his principal account. Tom has just discovered that Nicole took P25,000 from the principal account (current account) hoping her father would not notice it. As Tom wrote to the manager of his local bank months ago, expressly forbidding the bank to allow his daughter to do this, he wants the bank to refund the P25,000. With respect to BDO Online Account Opening Service (“Service”) Terms and Conditions, what recommendation can you give him?
James Cooper sells memberships to the Atlanta Symphony Association. TheAssociation’s procedure requires that Cooper prepare and give each customer a receipt for eachmembership sold. The receipt forms are prenumbered. Cooper is having personal financialproblems, and he kept the $500 cash received from a customer for a new membership. To hidehis theft, Cooper destroyed the Association’s copy of the receipt that he gave to the customer.What will alert manager Terry Reynolds that something is wrong?
Mario is engaged in a pharmaceutical business. One day, Mario unnecessarily bought from Dario a truckload of supplies and medicines to be sold in his pharmacy so that he could post the cost in his ledger as expense to reduce his tax liability. Is the contract of sale between Mario and Dario valid? Why or why not? 2. Joanna entered into a loan contract with Marie over Marie’s car where Joanna is the borrower and Marie is the lender. It was stated in the contract that the ownership will be transferred to Joanna. The title to the car was given to Joanna who registered the car in her name. Before the end date of the contract, Joanna expressed her intention to buy the car. But Marie refused to agree to Joanna’s intent. Was Marie correct in refusing to agree to Joanna’s intent? Why or why not? 3. Scott requested Jenny to work with the Bureau of Internal Revenue (BIR) in further reducing the tax liability of the company believing her to be an accountant. Meanwhile, Jenny took advantage of…