Jimmy has fallen on hard times recently. Last year he borrowed $312,000 and added an additional $89,500 of his own funds to purchase $401,500 of undeveloped real estate. This year the value of the real estate dropped dramatically, and Jimmys lender agreed to reduce the loan amount to $290,300. For each of the following independent situations, indicate the amount Jimmy must include in gross income:

The real estate is worth $233,300 and Jimmy has no other assets or liabilities.