Jim used his accounting training to become a mortgage foreclosure expert. He forecloses

on a clients recourse mortgage $($$$250$k unpaid; $300$k original balance$)$ when they stop

making payments. The property had a FMV of $$200$k$,$ and a basis of $$150$k$,$ and Jim

forgives the mortgage after taking the property.

What are the total income$/$losses $($if any$)$ that result from the foreclosure $/$ mortgage

forgiveness?

  

Answer rating: 100% (QA)

Loss on Debt Forgiveness Amount forgiven 300000 original balance 2500... View the full answer