Robinson owns a warehouse that is used in his auto parts store. The warehouse has a FMV of $91,300, an adjusted basis of $42,700, and an outstanding mortgage of $60,400. Robinson is not bankrupt or insolvent, but due to COVID-19, he is having trouble making the payments on the mortgage and is able to persuade the bank to forgive $24,400 of the debt. What are the tax consequences for Robinson? (If answer is zero, please enter O, do not leave any fields blank.) Income from the forgiveness of debt New basis $ $

Robinson owns a warehouse that is used in his auto parts store. The warehouse has a FMV of $91,300, an adjusted basis of $42,700, and an outstanding mortgage of $60,400. Robinson is not bankrupt or insolvent, but due to COVID-19, he is having trouble making the payments on the mortgage and is able to persuade the bank to forgive $24,400 of the debt. What are the tax consequences for Robinson? (If answer is zero, please enter O, do not leave any fields blank.) Income from the forgiveness of debt New basis $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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