Jimmy has fallen on hard times recently. Last year he borrowed $336,000 and added an additional $85,000 of his own funds to purchase $421,000 of undeveloped real estate. This year the value of the real estate dropped dramatically, and Jimmys lender agreed to reduce the loan amount to $308,700.

For each of the following independent situations, indicate the amount Jimmy must include in gross income: (Leave no answer blank. Enter zero if applicable.)

a. The real estate is worth $252,900 and Jimmy has no other assets or liabilities.

Amount Included in Gross Income: _____

b. The real estate is worth $315,000 and Jimmy has no other assets or liabilities.

Amount Included in Gross Income: _____

c. The real estate is worth $269,400 and Jimmy has $46,900 in other assets but no other liabilities.

Amount Included in Gross Income: _____