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SPS was organized on December 31, 1991. Its opening balance
sheet as of that date shows current assets of $23,509, consisting
of $5,000 in cash and $18,509 in accounts receivable. Deposit
slips show three separate deposits in the total amount of $5,000
were made into SPS’s account at NCNB National Bank during
December 1991. Two of these deposits are traceable to a check
for $3,000 drawn on WIS’s account. Transfer of the accounts
receivable reflected on SPS’s opening balance sheet is
substantially confirmed by payments made to SPS on these accounts
in the total amount of $17,911 in January and February 1992. The
parties have stipulated that WIS transferred additional accounts
receivable to SPS in 1992. These receivables represent work for
which WIS issued invoices during January 1992. Although the
stipulated amount of the receivables transferred in 1992 is
$8,141, comparison of the invoices evidencing these additional
3(...continued)
petition is voidable unless authorized by the bankruptcy court or
by some provision of the Bankruptcy Code. 11 U.S.C. sec. 549
(1988). Any plan for the rehabilitation of the debtor must be
submitted to the creditors for approval and confirmed by the
bankruptcy court. 11 U.S.C. secs. 1125, 1126, 1128, 1129 (1988).
It is not entirely clear from petitioner’s testimony what would
have persuaded the bankruptcy court and WIS’s creditors that
WIS’s transfer of property to another corporation partly owned by
its sole shareholder served the creditors’ interests. However,
inasmuch as respondent did not challenge the plausibility of
petitioner’s account of the business reincorporation transaction
on this ground, there is no evidence contradicting his account,
and the tax consequences of his account are not necessarily more
favorable to him than other conceivable explanations of the few
facts relating to the transaction for which documentation exists,
we accept petitioner’s account.
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