CityLight Co. is struggling financially. Prior to debt renegotiations, the company's total assets were $11 million and total liabilities were $18 million. The company has negotiated with the debtors to cancel $15 million of the outstanding debt. What amount of gross income must CityLight Co. report associated with the discharge of indebtedness? 

Answer rating: 100% (QA)

When a companys debt is canceled or forgiven it is considered income for tax purposes This ... View the full answer