Ritchie's father, Howard, lent Ritchie $25,000 to help Ritchie buy an interest in Fonzi's car repair business. Several years later, when the loan was still outstanding and Ritchie got married, Howard canceled the loan "to help out the happy couple." Does Ritchie recognize COD income?

Answer rating: 100% (QA)

When a lender cancels a debt owed by a borrower it results in a discharge of indebtedness The cancel... View the full answer