Was canceled by a purchase price Would have been deductible by the taxpayer paid Canceled was for the mortgage on a taxpayer's second home Mark for follow up Question 3 of 75 All income from a canceled debt may be excluded from income of the taxpayer Received a Form 1099-C with $18,400 in box 2 and 516,700 in box 7 and they were insolvent by $2.900. Had a debt of $5.400 canceled, and prior to the debt, they were insolvent by $2,750 Had $12.500 of debt canceled, and prior to the cancellation, they were insolvent by $13.000 Had a debt of $8.750 canceled, and prior to the debt, they were insolvent by 57,500 Mark for follow up Question 4 of 75. Debt canceled in a personal bankruptcy is taxable as cancellation of debt income to what extent? Alcanceled debt, except for that related to real property is taxable as cancellation of debt income Unsecured debt that is canceled in bankruptcy is taxable as income. Only secured debt in excess of the fair market value of the collateral is taxable as income. Debt canceled in a bankruptcy proceeding under federal law is not taxable as cancellation of debt income Mark for follow up