No taxable income is recognized from cancellation of debt in which instance? O The taxpayer was solvent prior to the debt cancellation. The taxpayer uses a service to consolidate their debts. The canceled debt was for the taxpayer's second home. The debt cancellation was intended as a gift. O O How is the MACRS deduction calculated in the year of disposition for an asset that has been depreciated using the half year convention? The total depreciation allowed for the year is: O Multiplied by 1/2. O Divided by 1/2 O Multiplied by 1/4. O Divided by 1/4