John Writes a Check for $100 on His Account at the Sacred

question 43

Multiple Choice

John writes a check for $100 on his account at the Sacred Heart Bank to repay the $100 he owes Perry. He gives the check to Eliot and tells her to hand it over to Perry. However, Eliot loses the check before she can give it to Perry. Later, John realizes that he had not written Perry's name on the lost check. According to the provisions of the Uniform Commercial Code (UCC) , on which of the following parties should the risk of loss of the check be placed?

• A) Eliot
• B) Perry
• C) John
• D) Sacred Heart Bank

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Definitions:

Schedule E

A part of the IRS tax forms used for reporting income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.

Schedule A

A tax form used by American taxpayers to itemize deductions, such as medical and dental expenses, taxes paid, and interest.

Rental Income

Income received from leasing property to tenants, considered taxable income and must be reported to tax authorities.

Masters Golf Tournament

An annual prestigious golf championship held at Augusta National Golf Club in the United States.