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Eve Sells Her Motorcycle to Her Brother Floyd for $1,000

Question 58

Multiple Choice

Eve sells her motorcycle to her brother Floyd for $1,000. Twelve days later, Eve files for bankruptcy under Chapter 7.
-Refer to Fact Pattern 26-1.Regarding the sale of the cycle,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 Floyd's estate for the return of the $1,000.

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