4. Duke Corporation had assets with a FMV of $500,000 and liabilities of $800,000. By agreement of its creditors, the liabilities were reduced to $300,000. What amount of income must Duke report in the current year as a result of the cancellation of indebtedness? a. $500,000 b. $200,000 c. $300,000 d. $ 0 e. None of the answers provided is correct