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Instead of credit card debt, assume that the $10,000 debt was a note payable to the seller on the purchase of a motorcycle, and the

Instead of credit card debt, assume that the $10,000 debt was a note payable to the seller on the purchase of a motorcycle, and the seller agreed to cancel $7,000 of the note. How much gross income would Ashley recognize? How would this impact Ashley's basis in the motorcycle?

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