Debra's Charhouse currently has business assets of $130,600 and business debts of $268,000. Debra does not file for bankruptcy, but through forgiveness she is able to reduce her debts by $189,200. What are the tax consequences to Debra? Debt forgiveness excluded from income Debt forgiveness included in income I MONE

Debra's Charhouse currently has business assets of $130,600 and business debts of $268,000. Debra does not file for bankruptcy, but through forgiveness she is able to reduce her debts by $189,200. What are the tax consequences to Debra? Debt forgiveness eccluded from incorne Debt forgiveness included in income