Question 8 of 75. Edward is single. His modified adjusted gross income of $241,000 includes: wages $7.500 of tax-exempt interest, $3,000 OT dividends, $2,500 of rental income and $25 non investment income and none of the income is from a trade or business. Edward wille income tax on - es: wages of $209,000, 51,500 of interest nd $25,000 of capital gains. He has to other Edward will calculate his net investment $29,500 $32,000 O $39,500 O $241,000 No taxable income is recognized from cancellation of debt in which instance? O O 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