Problem 5-56 (LO. 2) Vic, who was experiencing financial difficulties, was able to adjust his debts as follows: a. Vic is an attorney. Vic owed his uncle $25,000. The uncle told Vic that if he serves as the executor of the uncle's estate, Vic's debt will be canceled in the uncle's will. The $25,000 debt cancellation is Vic's gross income when the uncle dies. b. Vic borrowed $80,000 from First Bank. The debt was secured by land that Vic purchased for $100,000. Vic was unable to pay, and the bank foreclosed when the liability was $80,000, which was also the fair market value of the property. Vic has a $ as a result of the foreclosure. c. The Land Company, which had sold land to Vic for $80,000, reduced the mortgage on the land by $12,000. The $12,000 reduction in the debt is Vic's gross income and Vic must his basis in the property. Problem 5-37 (Algorithmic) (LO. 2) Zack, age 50, is an officer of Blue Company, which provides him with the following nondiscriminatory fringe benefits in 2021: Hospitalization insurance premiums for Zack and his dependents. The cost of the coverage for Zack is $3,000 per year, and the additional cost for his dependents is $4,300 per year. The plan has a $2,000 deductible, but his employer contributed $1,500 to Zack's Health Savings Account (HSA). Zack withdrew only $900 from the HSA, and the account earned $70 of interest during the year. Insurance premiums of $500 for salary continuation payments. Under the plan, Zack will receive his regular salary in the event he is unable to work due to illness. Zack collected $7,700 on the policy to replace lost wages while he was ill during the year. Zack is a part-time student working on his bachelor's degree in engineering. His employer reimbursed his $3,150 tuition under a plan available to all full-time employees. For each of the following items, enter the amount to be included in Zack's gross income. If an amount is zero, enter "O". Amount Included a. Hospitalization insurance premiums for Zack and his dependents. b. Insurance premiums of $500 for salary continuation payments. C. The $7,700 Zack collected on the salary continuation policy to replace lost wages while he was ill during the year. III d. Tuition reimbursement under a plan available to all full-time employees