Fact Pattern 25-1

question 32

Multiple Choice

Fact Pattern 25-1
Damian owns a pick-up truck and a motorcycle. He sells the motorcycle to Eden for $10,000. Eden pays for the cycle with a check, knowing that she had insufficient funds in her account to cover the amount. A week later, Damian files a petition in bankruptcy for relief through a liquidation.
-Refer to Fact Pattern 25-1. Regarding the pick-up truck, Damian

• A) can exempt an interest in it up to $3,675 from the bankruptcy.
• B) must include it as part of the estate because Damian sold the cycle.
• C) must include it as part of the estate because Eden's check did not cover the cost of the cycle.
• D) must include it as part of the estate unless the trustee recovers the price from Eden.

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Definitions:

Declarative Memories

Memories that can be consciously recalled, such as facts and events, and can be verbally communicated.

Central Executive

A component of working memory model that is responsible for directing attention and coordinating cognitive processes.

Phonological Loop

A component of working memory responsible for holding and rehearsing verbal and auditory information.

Visuospatial Sketchpad

A component of the working memory that holds and processes visual and spatial information, playing a critical role in navigation and understanding of spatial relationships.