Sandy owns a farm with a fair market value of $500,000 and an adjusted basis of $350,000. She owes $550,000 on a recourse loan secured by the mortgage on the property. which of the following is true if the lender forecloses on the farm and agrees to forgive the deficiency? a. No gain is realized on the deemed sale of the property. b. Sandy may exclude the gain on the deemed same of the property from her gross income if she is bankrupt or insolvent c. Sandy realizes income from the discharge of indebtedness of $200,000. d. The discharge of indebtedness income may be eligible for exclusion under IRC 108.