Question: Choose the correct answer to complete the following statement: canceled debt is______. A. Included and gross income when the debt is discharged in a title

Choose the correct answer to complete the following statement: canceled debt is______.
A. Included and gross income when the debt is discharged in a title 11 bankruptcy case.
B. Included in gross income if the debt is discharged when the taxpayer is solvent.
C. Not included in gross income when the debt is canceled as a gift.
D. Included and gross income when the debt is discharged as an inheritance.

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