Anna borrowed $11,500. In 2021, the debt was forgiven. Anna does not believe she should ecause she received nothing at the time the debt was forgiven in 2021. ount of income should Anna record in her tax return in relation to debt forgone?

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 2.1C
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ducation.com/ext/map/index.html?_con3Dcon&external_browser%3D08&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/q.
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In 2016, Anna borrowed $11,500. In 2021, the debt was forgiven. Anna does not believe she should report the forgiveness of debt as
income because she received nothing at the time the debt was forgiven in 2021.
Required:
What amount of income should Anna record in her tax return in relation to debt forgone?
Income to be recorded
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Transcribed Image Text:lare X 2021taxtables.pd x 2021taxtables.pd x https://ezto-cf-m x uons: ducation.com/ext/map/index.html?_con3Dcon&external_browser%3D08&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/q. ulos 1, 2, 3 y 4 O Saved Help Save CI In 2016, Anna borrowed $11,500. In 2021, the debt was forgiven. Anna does not believe she should report the forgiveness of debt as income because she received nothing at the time the debt was forgiven in 2021. Required: What amount of income should Anna record in her tax return in relation to debt forgone? Income to be recorded < Prev 8 of 15
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