During$$ bankruptcy, USAUSA Corporation debt was reduced from $ $775$ comma $000$$$775,000$ to $ $475$ comma $000$$$475,000.$ USAUSA $$Corporation$\text{'}$s assets are valued at $ $700$ comma $000$$$700,000.$ USA'sUSA's NOL carryover was $ $350$ comma $000$$$350,000.$

Requirements

a$.$

Is USAUSA Corporation required to report any income from the discharge of its$$ debts?

b$.$

Which tax attributes are reduced and by how$$ much? Assume USAUSA does not make any special elections when reducing its attributes.

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Part $1$

Requirement a$.$ Is USA