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Faith works for a large corporation, which has a small loan program for employees. Faith takes out a $10,000 loan to cover the cost of

Faith works for a large corporation, which has a small loan program for employees. Faith takes out a $10,000 loan to cover the cost of medical expenses not covered by her insurance. After a year, it becomes clear that she cannot repay the loan so her employer tells her they are giving her an early Christmas gift and she will not have to repay the loan. 


What tax consequences to Faith? 

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