Jimmy has fallen on hard times recently. Last year he borrowed $316,000 and added an additional $87,500 of his own funds to purchase $403,500 of undeveloped real estate. This year the value of the real estate dropped dramatically, and Jimmy’s lender agreed to reduce the loan amount to $286,400.

For each of the following independent situations, indicate the amount Jimmy must include in gross income: (Leave no answer blank. Enter zero if applicable.)

A) The real estate is worth $227,900 and Jimmy has no other assets or liabilities

B) The real estate is worth $294,600 and Jimmy has no other assets or liabilities

C) The real estate is worth $249,300 and Jimmy has $48,300 in other assets but no other liabilities

Amount Includible   Scenario A   ________           Senario B____________      Scenario C_______________