Taxpayer goes a fancy dinner and racks up a bill of $500. When the check comes, Taxpayer tells the owner that he has no money. Taxpayer agrees to wash dishes for the next three nights to satisfy the debt? What are the tax consequences to Taxpayer? 

 Taxpayer has cancellation of debt income of $500. 

Taxpayer has compensation for services income of $500. 

Taxpayer has no gross income because the meal was not a deductible business meal. 

Taxpayer has no gross income because there was no cash exchanged.