After a waiting period runs out, creditors are barred from bringing claims, and the debts of the estate may be paid.

On November 10, Cutter, a dealer, purchased 100 lawnmowers. This comprised Cutter's entire inventory and was financed under an agreement with Town Bank which gave the bank a security interest in all lawnmowers on the premises, all future acquired lawnmowers, and the proceeds of sales. On November 15, Town Bank filed a financing statement that adequately identified the collateral. On December 20, Cutter sold one lawnmower to Wills for family use and five lawnmowers to Black for its gardening business. Which of the following is correct?

A. Town's security interest may not cover after-acquired property even if the parties so agree. B. The lawnmower sold to Wills would not ordinarily continue to be subject to Town's security interest. C. The lawnmowers sold to Black would ordinarily continue to be subject to Town's security interest. D. Town's security interest does not include the proceeds from the sale of the lawnmowers to Black.

A corporation ________

A) must use the straight-line depreciation method for tax purposes and double declining depreciation method financial reporting purposes B) can use straight-line depreciation method for tax purposes and MACRS depreciation method financial reporting purposes C) can use different depreciation methods for tax and financial reporting purposes D) must use different depreciation method for tax purposes, but strictly mandated depreciation methods for financial reporting purposes