6. In return for a $5,000 payment, Creditor cancels Taxpayer's debt of $8,000. The cancellation is not a gift and Taxpayer is neither insolvent nor bankrupt. Which of the following statements is correct? A Creditor has $8,000 taxable income. B Taxpayer has $3,000 of taxable income. C Taxpayer has $5,000 of taxable income. D Neither Creditor, nor Taxpayer has any taxable income from this transaction. E None of the above (all of the statements are false)