During 2021, Brenda Baker receives a watch as a safety achievement award from her employer. The award was not a qualified plan award. The watch cost the employer $450 and has a fair market value of $600. How much must Brenda include on her 2021 Form 1040 ? In return for $1,000, Thomas Taylor cancels a debt owed to him by Albert Able. The debt amount was $7,000. Assume that the debt cancellation was not a gift and that Albert Able is neither insolvent nor bankrupt. Which of the listed statements is correct? A Thomas Taylor has $1,000 of taxable income B Albert Able has $7,000 of taxable income C Albert Able has $6,000 of taxable income D Neither Thomas Taylor nor Albert Able has any taxable income from the transaction E None of the listed statements are correct