Vic, who was experiencing financial difficulties, was able to adjust his debts as follows:

a. Vic is an attorney. Vic owed his uncle $25,000. The uncle told Vic that if he serves as the executor of the uncles estate, Vics debt will be canceled in the uncles will.

b. Vic borrowed $80,000 from First Bank. The debt was secured by land that Vic purchased for $100,000. Vic was unable to pay, and the bank foreclosed when the liability was $80,000, which was also the fair market value of the property.

c. The Land Company, which had sold land to Vic for $80,000, reduced the mort- gage on the land by $12,000. Determine the tax consequences to Vic.