ax1 7. Joan purchased her residence for $500,000 six years ago by borrowing $450,000. In the current year, she becomes unemployed and can no longer afford to make the full monthly payment on the mortgage. When the mortgage balance is $430,000, the bank agrees to reduce her mortgage to avoid foreclosure. Joan is insolvent before and after the loan reduction. How much income would Joan have to recognize if the bank agrees to reduce the mortgage on the residence to $300,000? a. $-0- b. $20,000 c. $30,000 d. $50,000 e. $80,000 Tax1 C -M

7. Joan purchased her residence for $500,000 six years ago by borrowing $450,000. In the current year, she becomes unemployed and can no longer afford to make the full monthly payment on the mortgage. When the mortgage balance is $430,000, the bank agrees to reduce her mortgage to avoid foreclosure. Joan is insolvent before and after the loan reduction. How much income would Joan have to recognize if the bank agrees to. reduce the mortgage on the residence to $300,000 ? a. S-0. b. $20,000 c. $30,000 d. $50,000 e. $80,000 7. Joan purchased her residence for $500,000 six years ago by borrowing $450,000. In the current year, she becomes unemployed and can no longer afford to make the full monthly payment on the mortgage. When the mortgage balance is $430,000, the bank agrees to reduce her mortgage to avoid foreclosure. Joan is insolvent before and after the loan reduction. How much income would Joan have to recognize if the bank agrees to. reduce the mortgage on the residence to $300,000 ? a. S-0. b. $20,000 c. $30,000 d. $50,000 e. $80,000