Sam owes Bob $8,000. Bob cancels (forgives) the debt. The cancellation is not a gift, but Sam is insolvent. Which of the following statements is correct concerning the impact of this transaction? A) Both Bob and Sam recognize $8,000 of taxable income. B) Bob recognizes $8,000 of taxable income. C) Sam recognizes $8,000 of taxable income. D) Neither Bob nor Sam has any taxable income from this transaction