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Jimmy has fallen on hard times recently. Last year he borrowed $257,000 and added an additional $62,000 of his own funds to purchase $319,000 of
Jimmy has fallen on hard times recently. Last year he borrowed $257,000 and added an additional $62,000 of his own funds to purchase $319,000 of undeveloped real estate. This year the value of the real estate dropped dramatically, and Jimmy's lender agreed to reduce the loan amount to $227,700. For each of the following independent situations, indicate the amount Jimmy must include in gross income: Note: Leave no answer blank. Enter zero if applicable. Required: a. The real estate is worth $164,900 and Jimmy has no other assets or liabilities. b. The real estate is worth $234,750 and Jimmy has no other assets or liabilities. c. The real estate is worth $193,900 and Jimmy has $52,800 in other assets but no other liabilities
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