M issues a negotiable promissory note payable to the order of P for P10,000 in exchange for his legal services worth P9,000. Later, P endorses the instrument to A for P10,000. Based solely on these facts, how much should M pay A?
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M issues a negotiable promissory note payable to the order of P for P10,000 in exchange for his legal services worth P9,000. Later, P endorses the instrument to A for P10,000. Based solely on these facts, how much should M pay A?
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- T borrows $100,000 from the bank in Year 1, which he agrees to repay in Year 2. Whenthe debt becomes due in Year 2, the bank agrees to release T from liability if hepays $80,000.a. T realizes $100,000 of income in Year 1.b. T realizes $20,000 of income from the cancellation of debt in Year 2.c. T realizes $20,000 of ordinary income as compensation for services in Year 2 ifthe cancellation of debt was intended to satisfy the bank’s obligation to pay Tfor services.d. Both a and b.e. Either b or c, depending on the circumstances. T buys a parcel of real estate for $100,000, which he finances by giving the seller a nonrecoursemortgage for the full purchase price. The debt is due in one balloon payment inYear 5. When the debt becomes due in Year 5, T decides to give the property back to theseller in satisfaction of the debt (the property is worth only $50,000 at that time).a. T will realize $100,000 of income in Year 1 because the debt was non-recourse.b. T will realize no income in Year…On January 1, 1999, A signs a promissory note and binds himself to pay X P100,000 plus 15% per annum interest on June 30, 1999. Before June 30, 1999, X can demand payment IF on June 30, 1999, A is paying X, X can refuse the payment Because the period is for the benefit of the debtor, A can compel the creditor X to accept payment any date before June 30, 1999. Because the period is for the benefit of the debtor and the creditor, X can refuse any rendered payment before June 30, 1999.John, Anthony and Lorenzo borrowed from Derick and James in solidum the amount of P120,000.00 due on September 30, 2022. Debtors’ arrangement among each other is to pay only the exact amount that each benefited from the loan. Such that John used only P20,000.00 while Anthony and Lorenzo each took home P50,000.00 therefrom. In this case, how much is the maximum total amount that Derrick can legally collect from the debtors on due date? Just write the correct exact amount. No need to explain.
- S (debtor) is indebted to T (creditor) in the amount of PhP50,000.00. S proposed to T that Y will be the one to pay the debt, making him (Y) as the new debtor. T agreed to the proposal. It turned out, however, that Y is insolvent so T was not able to collect the amount due from Y. Question: Can T enforce the obligation to S, given the insolvency of Y? ExplainPat invites Tin to join him in his business. Tin agreed that the following adjustments are taken up in the books of Pat: Prepaid expenses of P 10,000 and accrued expenses of P6,000 are to be recognized. Allowance for doubtful accounts on Pat's accounts receivable shall be increased by P10,000. Pat's capital before adjustment for the above items was P405,000. Tin will invest enough cash to make her equal to 60%. How much should Tin invest to give her a 60% equity or capital of the firm?What if Jm owes Dean $1 million with Jericho as guarantor. The principal obligation is the debt of $1 million, while the accessory obligation is the guaranty of Jericho. What will be the remission of the debt of Jm by Dean?
- Marcus issues a negotiable promissory note payable to the order of Parish for the amount of $3,000. Parish raises the amount to $13,000 and negotiates it to Hilda for $12,000. a. If Hilda is a holder in due course, how much can she recover from Marcus? How much from Parish? If Marcus’s negligence substantially contributed to the making of the alteration, how much can Hilda recover from Marcus and Parish, respectively? b. If Hilda is not a holder in due course, how much can she recover from Marcus? How much from Parish? If Marcus’s negligence substantially contributed to the making of the alteration, how much can Hilda recover from Marcus and Parish, respectively?Dakota owes Christopher PHP80,000 which is due on April 20. On the other hand, Christopher owes Dakota the following debts: PHP30,000 due on April 02; PHP10,000 due on April 09; PHP20,000 due on April 15; and PHP5,000 due on April 21. If on April 14, Christopher assigned his credit right to Tammy with notice to Dakota but Dakota did not give his consent to the assignment, how much may Tammy collect from Dakota on April 20? A. PHP20,000 B. PHP15,000 C. PHP40,000 D. Nothing, because Dakota did not give his consent to the assignment. why is the answer C?-G, guardian of M, sold the latter’s parcel of land worth P100,000 for only P90,000. Is the contract rescissible? Explain. -X orally sold his lot to Y for P500,000 and the latter gave an earnest money in the amount of P50,000 which the former acknowledged in a receipt. Later on, X refused to comply with the contract. Can Y enforce the contract against X? Explain.
- Ayen, Tristan and joey are solidary debtors under a loan obligation of P900,000.00 which has fallen due. However, Adolf, the creditor, condoned Ayen’s entire share in the debt. Since Tristan has become insolvent, Adolf makes a demand on Joey to pay the debt. 4.a) How much, if any, may Joey be compelled to pay? 4.b) To what extent, if at all, can Ayen be compelled by Joey to contribute to such payment?LO.2 In 2019, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients and earned 25,000. The clients signed notes receivable to Chaya that have a fair market value of 22,000 at year-end. In addition, Chaya sold a 36-month service contract on June 1, 2019, and received payment in full of 12,000. How much gross income does Chaya report from these transactions in 2019?
