Quick Corp

question 26

Multiple Choice

Quick Corp.has $270,000 of outstanding accounts receivable.On March 10,1988,Quick assigned a $30,000 account receivable due from Pine,one of Quick's customers,to Taft Bank for value.On March 30,Pine paid Quick the $30,000.On April 5,Taft notified Pine of the March 10 assignment from Quick to Taft.Who is Taft entitled to collect the $30,000 from?

• A)Either Quick Corp.or Pine
• B)Quick Corp.only
• C)Pine only
• D)Taft Bank cannot claim any money because it notified Quick Corp.too late

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Taxable Income

The portion of an individual's or corporation's income used to determine how much tax is owed to the government in a specific tax year.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, typically structured to tax higher income earners at a higher rate.

Taxes

Compulsory financial charges or other types of levies imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.