Income from canceled debt

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In which case will Jenny and Justin Tucker be able to exclude all income from their canceled debt? * (A) They received a Form 1099-C with $15,400 in box 2 and $12,700 in box 7, and they were insolvent by $3,200. (B) They had a debt of $4,500 canceled. Prior to the debt, they were insolvent by $3,565. (C) They had $14,800 of debt canceled. Prior to the cancellation, they were insolvent by $21,300. (D) They had a debt of $9,725 canceled. Prior to the debt, they were insolvent by $9,000.

Reference no: EM131829381

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