Under what circumstances would the cancellation of debt be taxable to the debtor?
A. Cancellation of qualified farm indebtedness
B. Debt canceled during insolvency
C. Debt canceled were for assets with a market value greater than the debt of the asset
D. Debt that is cancelled in a Chapter 11 bankruptcy case.
Answer:C
Under what circumstances would the cancellation of debt be taxable to the debtor?
A. Cancellation of qualified farm indebtedness B. Debt canceled during insolvency C. Debt canceled were for assets with a market value greater than the debt of the asset D. Debt that is cancelled in a Chapter 11 bankruptcy case.