Jimmy has fallen on hard times recently.Last year he borrowed $315,000 and added an additional $64,500 of his own funds to purchase $379,500 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 $286,700.

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 $254,600 and Jimmy has $51,700 in other assets but no other liabilities.