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the total net amount of the assets transferred from Associates PC
to Hanna PC, reduced by liabilities assumed by Hanna PC, was
$17,943, as set forth below:
Assets Transferred
Cash $15,626
Accounts Receivable 63,730
Office Equipment 4,295
Horse Option 4,000
Interest in a Lawsuit 10,000
Total Assets $97,651
Liabilities Assumed
Notes Payable $39,821
Payroll Taxes Due 6,420
Salaries Payable 20,367
Accounts Payable 13,100
Total Liabilities $79,708
Total Net Amount of
Assets and Liabilities
Transferred and Assumed $17,943
We also conclude that because Associates PC received only
rights worth $79,708 from Hanna PC (namely, Hanna PC's assumption
of Associates PC's liabilities in that amount), Associates PC did
not receive reasonably equivalent value for the transfer of its
assets to Hanna PC.
With regard to whether Associates PC was insolvent on the
date of the transfer or was rendered insolvent pursuant to the
transfer of its assets to Hanna PC, under UFTA section 24.003(a)
a transferor is rendered insolvent if its liabilities are greater
than its assets after the transfer. In the instant case,
Associates PC had no remaining assets after the transfer, and
Associates PC had a $31,450 liability to respondent for Federal
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Last modified: May 25, 2011