Jimmy has fallen on hard times recently. Last year he borrowed $266,000 and added an additional $67,500 of his own funds to purchase $333,500 of undeveloped real estate. This year the value of the real estate dropped dramatically, and Jimmys lender agreed to reduce the loan amount to $242,900.

a. The real estate is worth $182,900 and Jimmy has no other assets or liabilities. Scenario A Amount Included in Gross Income b. The real estate is worth $248,250 and Jimmy has no other assets or liabilities. Scenario B Amount Included in Gross Income c. The real estate is worth $208,200 and Jimmy has $45,000 in other assets but no other liabilities. Scenario C Amount Included in Gross Income