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.

a. The real estate is worth $164,900 and Jimmy has no other assets or liabilities.