Final answer:
Larkin secured its interest by entering into a security agreement and filing a financing statement. Quarry Bank also secured its interest in a similar manner when Elk moved. The priority of security interests depends on various legal considerations.
Step-by-step explanation:
Larkin initially secured its interest in Elk's inventory, including the computers, by entering into a security agreement with Elk Appliance.
This agreement gave Larkin a security interest in the inventory as collateral for the debt owed by Elk. To perfect its security interest in the state of Whiteacre, Larkin would need to file a financing statement with the state's Secretary of State or other relevant authority. This filing puts other parties on notice of Larkin's interest in the inventory.
When Elk moved to Blackacre, Quarry Bank secured its interest in Elk's inventory by also entering into a security agreement with Elk and filing a financing statement in the state of Blackacre. To perfect its security interest, Quarry Bank would need to follow the necessary filing requirements in Blackacre just like Larkin did in Whiteacre.
In the event of Elk's default on both debts, legal considerations such as the priority of security interests would come into play. The resolution of priority would depend on various factors, such as when Larkin and Quarry Bank perfected their security interests, the order in which they filed their financing statements, and potentially other additional legal considerations not provided in the scenario.
Therefore, the correct statement is option (d) - The resolution depends on additional legal considerations not provided in the scenario.