Would Qualifying an Indorsement Be Ethical? Suppose you have taken a promissory note for $3,500 payable in 12 months with interest at 10 percent as payment for some carpentry work you did for a friend. You have some reason to believe the maker of the note is in financial difficulty and may not be able to pay the note when it is due. You discuss with an elderly neighbor the possibility of her buying the note from you as an investment, and she agrees to buy it from you for $3,000. Would it be ethical for you to indorse the note with a qualified indorsement ("without recourse")?
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- You have a friend, Icahn Betitall, who just started a small business. He ispaying a hefty premium for insurance. Icahn’s insurance agent told himthat he is insuring against the risk of loss on fire, theft, liability, and businessinterruption. Icahn also has policies for life, health, and automobiles. Icahnis planning a trip to Las Vegas. He plans to contact his agent and obtain apolicy on the risk of losing his money at the blackjack table.a. What should you tell Icahn about being able to purchase such a policy?b. What are several methods that Icahn can choose to manage his risk exposurein Las Vegas?A young couple wishes to take out a sizeable home loan and, at the insistence of the bank, your client, ask the husband's elderly Chinese parents to guarantee: the loan. The parents have very limited spoken and written English. Under what circumstances would you advise your client, the bank, that they could successfully rely on this guarantee should the young couple default on their loan?Question and my answer is below. Can you help me determine what I have done incorrectly? I believe it may be with the PMT line. I selected 0 because it doesn't say that her payments will be reinvested. investment you made in a friend’s business. She will pay you $22,809 at the end of this year, $45,618 at the end of next year, and $68,427 at the end of the year after that (three years from today). The interest rate is 11.5% per year. What is the PV of your windfall? Financial Calculator: N = 1 year I/Y = 11.5% *Note: Only place 11.5 press I/Y; no division or equal sign like mortgage FV = 22,809 PMT = 0 *Note: Payment here is any additional deposits. It says she pays you, not reinvest) CPT PV = 20,456.50 b. What is the FV of your windfall in three years? Financial Calculator: N = 3 year I/Y = 11.5% *Note: Only place 11.5 press I/Y; no division or equal sign like mortgage PV = 68,427 PMT = 0 *Note: Payment here is any additional deposits. It says she pays you, not reinvest)…
- Review the following scenario. Identify how much each lienholder would receive. Mrs. Smith takes out a $450,000 mortgage loan to construct her home. Unfortunately she loses her job and defaults on her payments, leading the lender to foreclose on her house. The lender only receives $375,000 at the foreclosure option. (Enter answers using exactly this format "$x,xxx.xx") $350,000 filed by mortgage lender in 2016 $20,000 filed by Court for lawsuit in 2012 $15,000 filed in 2018 for property taxes $10,000 filed by a contractor in 20141. Adrian is a bank manager. A customer Neo has come into the bank. Neo has a mortgage loan with the bank. Neo claims he has lost his job and will not be able to pay the loan back. His monthly payment is $1,000. Neo offers Adrian $7,500 as an accord and satis-faction. Can Neo enter into an accord and satisfaction with the bank? If not, how can he extinguish his liability to the bank? 2. Adrian is a bank manager. A customer Neo has come into the bank. Neo has a mortgage loan with the bank. Neo claims he has lost his job and will not be able to pay the loan back. His monthly payment is $1,000. Neo offers Adrian $7,500 as an accord and satis-faction. Can Neo enter into an accord and satisfaction with the bank? If not, how can he extinguish his liability to the bank?Jane Marks has a restaurant in which she accepts credit cards and checks.Several of the places that Jane shops now accept debit cards and do notaccept checks. Jane’s banker explained that a debit card would immediatelytransfer money into her account, but it would cost $50 per monthfor the equipment and bank charges. Although she requires proper identification,Jane loses approximately $590 a year as a result of bad checks.She also determined that on average, she loses 115 days of interest onall checks because the banks are closed on 11 holidays and weekends (52 weeks * 2 weekend days = 104 + 11 holidays). Jane currently earns3 percent interest on her bank accounts and accepts an average of $2,000 aday in checks.a. What is the total annual cost to Jane for the debit card service?b. What is the benefit?c. Should Jane implement the system?
- Refer to the previous question. Suppose you later received a letter in the mail with a $100 check in it from Daniel Delinkquint, together with a note describing how he had become a born-again Christian (much like Zacchaeus) and had determined to pay off all his debts (albeit not four-fold like Zacchaeus). Give the appropriate general journal entry(ies), if any, to reflect this payment from Daniel. Write “none” if no entry is required. Previous Question: Daniel Delinkquint owes your business $100 on account. He has moved and you have no idea how to contact him. You feel that perhaps the $100 he owes is not worth the time and effort to try to locate him. Furthermore, even if you did locate him, he probably would not pay the balance because he disputed it the last time your talked with him. An allowance has been made for this account in the past in accordance with GAAP. Give the appropriate general journal entry(ies), if any, to reflect your decision to not pursue collection from Daniel…Steven is a mortgage broker who receives referrals from a real estate agent on a regular basis. The real estate agent has told the Steven that she will be sending him several clients who may have trouble being approved because of their income. Steven is concerned that if he cannot get these clients approved the real estate agent will find another mortgage agent who can. Given this scenario which of the following statements is correct? Select one: a. The mortgage agent should consider each applicant on their own merits and do the ones he can ethically do b. The mortgage agent must not do these deals as they are likely fraudulent c. The mortgage agent must refer this situation to his principal broker since he knows they are fraudulent d. The mortgage agent should tell the real estate agent that he cannot do these deals because he would have to commit fraudSuppose you have a job that pays you $15,000 a year. You receive a credit application in the mail stating that you have been pre-approved for $3,000 in credit, but that you must make at least $18,000 a year to receive the card. What should you do?
- 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.Case, Part 2: Suppose you decide that you will not submit an application for an ARM due to Velma’s intention to retire in three years, about the time the monthly payments on the loan could jump beyond her ability to pay on a fixed income. You don’t want to seem as though you are pushing through an inappropriate loan. Velma is very unhappy and accuses you of refusing to help her because she’s a woman and a minority. It seems as though your choice is between risking accusations of discrimination or accusations of predatory lending. Now, what do you do?Bill is cleaning his basement and finds an old vase. Believing the vase is worthless he sells it for $50.00. Later he discovers that the vase was really worth $25,000. Bill will be able to: A) recover $25,000. B) not recover anything because mistakes in judgement as to value do not permit you to avoid a contract. C) rescind the contract D) all of the above