Rebecca has a loan with 1^st Town bank for $5,000. She lost her job several months ago and defaulted on the loan. The bank forgave the $5,000 loan. Prior to the debt forgiveness, she owned $10,000 in assets. Her total liabilities before the debt forgiveness were $12,000. How much will Rebecca have to report as taxable debt forgiveness on her tax return?

Group of answer choices

$0.

$2,500.

$3,000.

$5,000.