If,instead of Demanding Payment on the Note,Tonya Returns the Note

question 27

Multiple Choice

If,instead of demanding payment on the note,Tonya returns the note to Felicia without marking it in any way,is Felicia still liable on the note?

• A)No,because the note became void once it was reacquired by Felicia.
• B)No,since Tonya surrendered the note to Felicia,Felicia is no longer liable on the note.
• C)Yes,because Felicia must mutilate the note to show that Felicia is discharged from liability.
• D)Yes,she is primarily liable on the note,but the other endorsers were discharged.
• E)Yes,because she has not been discharged.

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Definitions:

Fixed Asset

A Fixed Asset is a long-term tangible piece of property that a company owns and uses in its operations to generate income, and not expected to be consumed or converted into cash within a year.

Straight-Line Depreciation

A plan to allocate the price of a concrete asset in consistent yearly fractions over its lifespan.

Salvage Value

The forecasted selling price for an asset once it reaches the end of its operational life.

Depreciation Expense

The allocated expense of a tangible asset over its useful life, representing the asset's reduction in value due to use and wear and tear.