In return for a $$5,000$ payment, Creditor cancels Taxpayer's debt of $$8,000.$ The cancellation is not a gift and Taxpayer is neither insolvent nor bankrupt. Which of the following statements is correct?

A$.$ Creditor has $$8,000$ taxable income.

B$.$ Taxpayer has $$3,000$ of taxable income.

C$.$ Taxpayer has $$5,000$ of taxable income.

D$.$ Neither Creditor, nor Taxpayer has any taxable income from this transaction.

E$.$ None of the above $($all of the statements are false$)$