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Korvikt [17]
4 years ago
13

Andrea owed $12,000 on a medical bill to University Hospital. The hospital agreed to discharge the debt due to Andrea's financia

l situation. Immediately prior to the discharge of the debt, Andrea's debts exceeded her assets by $5,000. How much of the debt forgiveness will Andrea need to include in her gross income?
Business
1 answer:
alexandr402 [8]4 years ago
8 0

Answer:

$7,000

Explanation:

Data provided in the question:

Amount owed by Andrea on a medical bill to university hospital = $12,000

Amount by  which the Andrea's debt exceeded her assets = $5,000

Now,

The debt forgiveness that Andrea will need to include in her gross income will be

= Amount owed on a medical bill - The amount by which debt exceeded assets

= $12,000 - $5,000

= $7,000

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