Preston is a restaurant owner who applies for and then receives a PPP LOAN of $79,000. If $70,000 of the PPP loan balance is eventually forgiven, then Preston will have to include that COD income on his:

(a) California tx return(AB 1577 characterizes forgiven PPP debts as taxable income

(b) Federal tax return (the Cares act characterizes forgiven PPP debts as taxable income)

(c) both (a) and (b)

(d) neither (a) nor (b); the federal Cares act and California AB 1577 exclude forgiven PPP debts from gross income