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kondaur [170]
3 years ago
15

Deb has found it very difficult to repay her loans. Because of these difficulties, the bank decided to forgive one of her most r

ecent loans, an amount of $73,500. After the loan was discharged, Deb had total assets of $264,000 and her remaining loans totaled $255,000. What amount must Deb include in her gross income
Business
1 answer:
antiseptic1488 [7]3 years ago
3 0

Answer:

$9,000

Explanation:

Calculation of the amount that Deb must include in her gross income

Total assets $264,000 -Remaining loans $255,000 =$9,000

Therefore the amount that Deb must include in her gross income would be $9,000. Hence a discharge of indebtedness will not be taxable in a situation where the taxpayer is insolvent before and after the debt might have been forgiveness and in a situation where the the discharge of indebtedness tend to makes the taxpayer solvent, the taxpayer will tend ro recognizes the taxable income to the extent of his solvency.

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7 0
3 years ago
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Answer:

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Explanation:

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Residual Income = $42,000 - $36,000

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lbvjy [14]

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2 years ago
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