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Discuss the advisability of the action

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Reference no: EM131110153

Sam Spender was involuntarily petitioned into bankruptcy by three of his creditors. When the trustee reviewed Sam's books and records, the trustee discovered the following transactions: (a) Three weeks before the filing of the petition, Sam bought for cash $17,000 worth of inventory for his store. (b) Sam made a $400 donation to the American Cancer society. (c) Twelve days before the filing of the petition, Sam 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 the action(s).

Reference no: EM131110153

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