Question
Arthur was involuntarily petitioned into bankruptcy by three of his creditors. When the trustee reviewed Arthur's books and records, the trustee discovered the following transactions:
Arthur was involuntarily petitioned into bankruptcy by three of his creditors. When the trustee reviewed Arthur's books and records, the trustee discovered the following transactions: (a) Three weeks before the filing of the petition, Arthur bought for cash $17,000 worth of inventory for his store. (b) Arthur made a $400 donation to the American Cancer Society. (c) Twelve days before the filing of the petition, Arthur paid a $300 electric bill for the current bill. The trustee is considering attempting to set aside each of these transfers as a preference. Discuss the advisability of such action (s).
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