Aubrey owns an office supply store. She borrowed $100,000 from U.S. Bank ("USB") and executed a security agreement granting a security interest in "all of my presently- owned and after-acquired inventory" to USB. USB properly filed a financing statement to perfect its interest. Without notifying USB, Aubrey sold a computer from her inventory to Nissa for use in her home. Does USB have priority over Nissa with respect to the computer purchased by Nissa? Explain.

Aubrey owns an office supply store. She borrowed $100,000 from U.S. Bank ("USB") and executed a security agreement granting a security interest in "all of my presently- owned and after-acquired inventory" to USB. USB properly filed a financing statement to perfect its interest. Without notifying USB, Aubrey sold a computer from her inventory to Nissa for use in her home. Does USB have priority over Nissa with respect to the computer purchased by Nissa? Explain.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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