M issued a negotiable promissory note payable to the order of P for P100,000. This was for the merchandise M purchased from P. P, however, was only able to deliver merchandise worth P70,000 only. Later, P endorsed the note to A, A to B, and B to C. A and C knew about this, while B did not. How much can C collect from M if B knew about the partial failure of consideration? a. 100,000 b. 70,000 c. 30,000

M issued a negotiable promissory note payable to the order of P for P100,000. This was for the merchandise M purchased from P. P, however, was only able to deliver merchandise worth P70,000 only. Later, P endorsed the note to A, A to B, and B to C. A and C knew about this, while B did not. How much can C collect from M if B knew about the partial failure of consideration? a. 100,000 b. 70,000 c. 30,000

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter16: Property Transactions: Capital Gains And Losses

Section: Chapter Questions

Problem 23P

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M issued a negotiable promissory note payable to the order of P for P100,000. This was for the merchandise M purchased from P. P, however, was only able to deliver merchandise worth P70,000 only. Later, P endorsed the note to A, A to B, and B to C. A and C knew about this, while B did not. Upon maturity, how much can C collect from M?
Westminster executed a promissory note with a face value of Php800,000.00, payable to the order of Bath. Bath indorsed the note to Whiltshire, to whom Bath owed Php500,000.00. If Westminster has no defense at all against Bath, for how much may Whiltshire collect from Westminster? a. None, as Whiltshire's remedy is to run after his debtor, Bath. b. Php300,000.00, as he is a holder for value to the extent of the difference between Bath's debt and the value of the note. c. Php500,000.00, as he is a holder for value to the extent of his lien. d. Php800,000.00, but with the obligation to hold Php500,000.00 for Bath's benefit.
The Statement of Affairs for Ivan Corporation shows that approximately P0.78 on the peso probably will be paid to unsecured creditors without priority. The corporation owes JICR Company P23,000 on a promissory note, plus accrued interest on P940. Inventories with a current fair value of P19,200 collateralized the note payable. Compute the amount that JICR Company should receive from Ivan Corporation assuming that the actual payments to unsecured creditors without priority consist of 78% of total claims.
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Berlin executed a promissory note in favor of Munich by way of accommodation. It says: "Pay to Munich or order the amount of Php8,000.00. Signed, Berlin." Munich then indorsed the note to Cologne, and Cologne to Munster. When Munster sought collection from Munich, the latter countered as indorser that there should have been a presentment first to the maker who dishonors it. Is Munich correct? a. No, since Munich is the real debtor and thus, there is no need for presentment for payment and dishonor by the maker. b. Yes, since as an indorser who is secondarily liable, there must first be presentment for payment and dishonor by the maker. c. No, since the absolute rule is that there is no need for presentment for payment and dishonor to hold an indorser liable. d. Yes, since the secondary liability of Munich and Cologne would only arise after presentment for payment and dishonor by the maker.