1. Juan owns vacant land that serves as security for a $60,000 mortgage. Juan is personally liable for the mortgage. His basis in the land is $20,000 and the fair market value is $50,000. The bank foreclosed on the property in 2019. What are the tax consequences to Juan? Juan recognizes income in the amount of his discharge of indebtedness; $60,000. Juan has a gain on the transfer and must recognize income of $40,000. Juan has $40,000 of income; a gain of $30,000 on the transfer and $10,000 as a discharge of indebtedness. Both (a) and (b) None of the above c)