Problem regarding the original loan agreement stamped

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Reference no: EM13991702

Darcy borrowed $4,000 in 2007 from her employer to purchase a new computer. She repays $1,000 of the loan plus 6% interest on the unpaid balance in 2007, 2008, and 2009. After closing a big deal in 2010, she receives the original loan agreement stamped ‘‘paid in full'' across the face. Does Darcy have to recognize any income from the cancellation of the loan in 2010? Explain.

Reference no: EM13991702

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