in which case will the taxpayer be able to exclude all income from their canceled debt? the taxpayer. A) Recieved a form 1099-C with $17400 in box 2 and $15700 inbox 7 and they have insolvant by $15800, B) had a debt of $5400 canceld immedialty prior to the debt they were inslvany by $2750, C) Had $11500 debt cancled immedialty prior to cancellation they inslavant by $$12000, D) had a debt of $7850 cancelled immedialty prior to the debit they were insolvant by $6500