Jim Salazar Is the Majority Shareholder of XYZ Co

question 42

Multiple Choice

Jim Salazar is the majority shareholder of XYZ Co. XYZ Co. filed for Chapter 11 bankruptcy on January 1, 20X8. Which of the following may be considered a fraudulent transfer?

• A) Transfer of land to Jim's sister Alice on July 1, 20X6.
• B) Sale of inventory at regular price to a new customer on February 15, 20X8.
• C) Transfer of fixed assets to Jim's brother John on December 15, 20X7.
• D) Transfer of inventory to a subsidiary for less than fair value on August 1, 20X6.
• E) Both a and c are correct.