On May 1, Year 5, two months after becoming insolvent, Quick Corp., an appliance wholesaler, filed a voluntary petition for bankruptcy under the provisions of Chapter 7 of the Federal Bankruptcy Code. On October 15, Year 4, Quick’s board of directors had authorized and paid Erly $50,000 to repay Erly’s April 1, Year 4, loan to the corporation. Erly is a sibling of Quick’s president. On March 15, Year 5, Quick paid Kray $100,000 for inventory delivered that day.
Quick’s payment to Kray would:
Select an answer:
A.
not be voidable, because it was a contemporaneous exchange.
B.
not be voidable, unless Kray knew about Quick’s insolvency.
C.
be voidable, because it was made within 90 days of the bankruptcy filing.
D.
be voidable, because it enabled Kray to receive more than it otherwise would receive from the bankruptcy estate.
.