Jimmy has fallen on hard times recently. Last year he borrowed $341,000 and added an...
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Jimmy has fallen on hard times recently. Last year he borrowed $341,000 and added an additional $91,500 of his own funds to purchase $432,500 of undeveloped real estate. This year the value of the real estate dropped dramatically, and Jimmys lender agreed to reduce the loan amount to $317,000.
For each of the following independent situations, indicate the amount Jimmy must include in gross income: (Leave no answer blank. Enter zero if applicable.)
A) The real estate is worth $253,000 and Jimmy has no other assets or liabilities.
B) The real estate is worth $326,300 and Jimmy has no other assets or liabilities
C)
The real estate is worth $281,700 and Jimmy has $52,000 in other assets but no other liabilities.
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