Althea writes a check to Handy Dan's Home Repair for $59.75 to cover the cost of having a window repaired in her home and gives the check toDan, the owner of Handy Dan's Home Repair. Dan alters the check by changing the amount to $559.75. Dan then takes the check to Home FederalSavings and Loan, the bank on which the check is drawn, and cashes the check. This, of course, results in an extra $500 being withdrawn fromAlthea's account. Home Federal Savings and Loan will be responsible for:issuing a stop payment order on the check.debiting Althea's account $559.75, the entire amount of the check.debiting Althea's account for nothing. Because the check was altered, Althea is not entitled to any reimbursement.debiting Althea's account $500.

Here discuss about the details of the issue of cheque which are altered and responsibility which are…

Answered: Althea writes a check to Handy Dan's…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

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

Section: Chapter Questions

Problem 35DQ

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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. be able to cash the check because it is order paper. be unable to cash the check because it is bearer paper.
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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.
Bob owns a boat supply store in Grosse Point. In March Bob borrows $1million from Mafia Bank to purchase Governor Snyder’s yacht. Mafia Bank takes a Security Interest in the yacht but does not perfect. In May, Bob borrows money from Premier Bank to purchase inventory. Premier takes a security interest in all inventory and files a financing statement. In June, Mafia Bank files a financing statement. If Bob defaults on all his loans, who wins?

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