Gary Writes a Check Drawn on Hillside Bank for $400

question 38

Multiple Choice

Gary writes a check drawn on Hillside Bank for $400 "payable to Ian" on May 1. Gary dies on May 3. Ian presents the check to the bank on May 5. Unaware of Gary's death, the bank

• A) must certify the check.
• B) may pay the check.
• C) must consult with Gary's heirs before paying the check.
• D) can do nothing until Ian claims an interest in the account.

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Definitions:

Married Filing Joint

A tax filing status used by married couples who combine their income, exemptions, deductions, and credits on one tax return.

Lifetime Learning Credit

The Lifetime Learning Credit is a tax credit available in the United States for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution, intended to promote post-secondary education.

Per Taxpayer

Refers to allowances, deductions, or credits applied on an individual basis for each taxpayer.

Child Tax Credit

A tax credit offered to eligible taxpayers for each qualifying dependent child, intended to help offset the cost of raising children.