Zane Has Been Living Above His Means for Many Months

Zane has been living above his means for many months.He has run up thousands of dollars in credit card charges.Zane is strongly considering bankruptcy but he wants to hide away some cash first.Therefore,he sells to his best friend Kate at a substantial discount a number of things he bought including golf clubs,jewelry,and electronics.Kate had no idea that Zane was contemplating bankruptcy and just thought that Zane was getting rid of some things he did not want.Four months later,Zane files and is allowed to proceed under a Chapter 7 bankruptcy.Mick,who knew that Zane had filed for bankruptcy,overhears Kate bragging about how much she was enjoying Zane's stuff that she got at a significant discount,and he notifies the bankruptcy judge.Which of the following is true regarding Kate's situation?

A) Kate will be allowed to keep the items because regardless of what she paid,she purchased them over 90 days before Zane filed for bankruptcy protection.
B) Kate will be allowed to keep the items if she paid at least 50% of the market value for them.
C) Under these facts,Kate will be allowed to keep the items if she paid at least 70% of the market value for them.
D) Because this is a fraudulent transfer,Kate will not be able to keep the items.