33. Albert purchased an office building from Lance for $2,000,000, which represented the building's fair market value. In connection with this purchase, Albert signed a mortgage payable to Lance, for $2,000,000. Sometime later, when the value of the building declined to $1,600,000 and the outstanding principal on the note was $2,000,000, Lance reduced the principal amount on the note to $1,600,000. Assuming Albert is solvent, how should the $400,000 reduction in the mortgage be treated for tax purposes? a. The reduction will have no immediate effect for tax purposes. b. The buyer/debtor Albert must recognize $400,000 as income from the discharge of indebtedness c. The buyer/debtor Albert will recognize no income but reduce his basis in the property by $400,000. d. The seller/lender Lance will reduce his selling price by $400,000. e. Both c. and d