1. Doug Smith is not very business sawy. He started an Irish pub two years ago, Hyland's Burren Bar, as a sole proprietorship. Because of his lack of experience (in running a pub, not as a patron), as of January 1, Smith owed over $100,000 to several creditors beyond his ability to pay when due, including $25,000 to Midleton Distributors. On February 1, Smith borrowed $15,000 from his brother Dana to pay some of his outstanding debts. Smith signed a ninety-day demand note at 5% simple interest. On April 30, Smith paid $15,187.50 to Dana, who stamped the note paid On June 1, Smith paid Midleton Distributors $12,500 toward the balance due to prevent Midleton Distributors from cutting off Smith's supply of Redbreast 15. Midleton then filled an order from Hyland's Burren Bar for $5,000 worth of Redbreast 15 and, with Smith's agreement, credited $5,000 of the $12,500 payment to the June 1 delivery. On July 1, Smith filed a voluntary petition for protection under Chapter 7 of the US Bankruptcy Code. The trustee in bankruptcy made preferential payment claims in the full amounts paid to them against both Dana and Midleton Distributors Case Study Discuss fully the preference claims of the trustee in bankruptcy. That includes the repayment by Doug to his brother Dana. Assume that Dana is not an insider. Treat the repayment of a loan the same as you would treat a payment of a trade debt for purposes of determining whether there is a valid preference claim. It also includes the $5,000 paid to Midleton for the bar's current delivery of Redbreast 15 and the $7,500 paid to Midleton for the bar's previous deliveries where payment was overdue