Cancellation of indebtedness. Ritt purchased a set of golf clubs from a local golf shop for $$1,500.$ Ritt paid $$300$ down and was to pay $$300$ per year for the next four years. Unfortunately, after Ritt purchased the golf clubs he ran into financial trouble and did not make his remaining payments totaling $$1,200$ to the golf shop. The golf shop tried to collect the money from Ritt to no avail. The golf shop ultimately decided to cancel Ritt's debt and take the loss rather than sue Ritt. Must Ritt include the $$1,200$ of cancelled debt into his gross income? Does your answer change if Ritt was insolvent at the time of the debt cancellation?