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Taxpayer owns a set with a fair market value of $ 3 0 0 , 0 0 0 . He owns $ 5 0 0

Taxpayer owns a set with a fair market value of $300,000. He owns $500,000 to bank call and $200,000 to lend Cole. Banko enters into an agreement with taxpayer tax payer will pay Banko $200,000 and Banko will forgive the remainder $300,000 of the debt. What are the tax consequences of taxpayer?

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