Lane promised to lend Turner $240,000 if Turner obtained sureties to secure the loan. Turner agreed with Rivers, Clark, and Zane for them to act as co-sureties on the loan from Lane. The agreement between Turner and the co-sureties provided that compensation be paid to each of the co-sureties. It further indicated that the maximum liability of each co-surety would be as follows: Rivers, $240,000, Clark, $80,000; and Zane, $160,000. Lane accepted the commitments of the sureties and made the loan to Turner. After paying 10 installments totaling $100,000, Turner defaulted. Clark's debts, including the surety obligation to Lane on the Turner loan, were discharged in bankruptcy. Later, Rivers properly paid the entire outstanding debt of $140,000. What amount may Rivers recover from Zane?
A. $0
B. $56,000
C. $70,000
D. $84,000
B. $56,000
You might also like to view...
The Change Fund is debited when the change fund is initially set up
Indicate whether the statement is true or false
When writing a cover letter, after specifying the job you're applying for, what should follow?
A) Your qualifications for that position B) A request for an interview C) Why you want to work for that company D) How the position will enhance your skills E) How the position supports your career goals
Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment$30,000 Annual cash inflows $6,000 Salvage value of equipment$0 Life of the investment 15yearsRequired rate of return 10%The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.The simple rate of return for the investment (rounded to the nearest tenth of a percent) is:
A. 13.3% B. 20.0% C. 18.0% D. 10.0%
The stage in which the economy hits a peak is called:
A. expansion. B. contraction. C. stagnation. D. recession. E. depression.