(4 points) Before any debt cancellation, the insolvent Sand Corporation holds business equipment, its only...
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(4 points) Before any debt cancellation, the insolvent Sand Corporation holds business equipment, its only asset, with a fair market value of $400,000 and related liabilities of $600,000. The lender agrees to cancel $350,000 of the liabilities. Sand Corporation has no other liabilities. How much gross income does Sand Corporation report as a result of the debt cancellation? Edit Format Table
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