Fact Pattern 30-1A (Questions A8-A9 Apply)

question 21

Multiple Choice

Fact Pattern 30-1A (Questions A8-A9 apply)
Stacy sells her all-terrain vehicle (ATV) to her brother Terrill for $1,000.Twelve days later,Stacy files a petition in bankruptcy for relief through a liquidation.
-Refer to Fact Pattern 30-1A.Regarding the sale of the ATV,the trustee may

• A)cancel it as a fraudulent transfer.
• B)cancel it as a voidable preference.
• C)not cancel it because it is a sale,not a gift.
• D)not cancel it,but can sue Terrill's estate for the return of the $1,000.

---

Definitions:

Common Stock

Common Stock denotes an equity interest in a corporation, providing voting rights and entitling the holder to a share of the company’s success through dividends and capital appreciation.

End-of-period Spreadsheet

A comprehensive worksheet that summarizes all accounts and balances at the end of an accounting period to facilitate the preparation of financial statements.

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been subtracted from total revenue.

End-of-period Spreadsheet

A document or report prepared at the end of an accounting period that summarizes all accounts and their balances to ensure accuracy and completeness.