In return for a $5,000 payment, Creditor cancels Taxpayer's debt of $8,000. The cancellation is...
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Accounting
In return for a $ payment, Creditor cancels Taxpayer's debt of $ The cancellation is not a gift and Taxpayer is neither insolvent nor bankrupt. Which of the following statements is correct?
A Creditor has $ taxable income.
B Taxpayer has $ of taxable income.
C Taxpayer has $ of taxable income.
D Neither Creditor, nor Taxpayer has any taxable income from this transaction.
E None of the above all of the statements are false
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