Jim Salazar is the majority shareholder of XYZ Co XYZ Co filed for Chapter 11 Bankruptcy on January 1, 2008 . Which of the following may be considered a fraudulent transfer?
a. Transfer of land to Jim's sister Alice on July 1, 2006.
b. Sale of inventory at regular price to a new customer on February 15, 2008.
c. Transfer of fixed assets to Jim's brother John on December 15, 2007.
d. Transfer of inventory to a subsidiary for less than fair value on August 1, 2006.
e. Both a and c are correct.
c
FEEDBACK: a. Incorrect.
b. Incorrect.
c. Correct. This is considered a fraudulent transfer because it is the only transfer that takes place within 1 year prior to the Chapter 11 bankruptcy filing.
d. Incorrect.
e. Incorrect.
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