$$In $2023,$ Sawyer was released from an obligation to pay a personal credit card debt in the amount of $$5,000.$

Sawyer received a $2023$ Form $1099-$C from the credit card lender showing the entire amount of discharged debt of $$5,000$ in box $2.$ None of the exceptions to the general rule that canceled debt is included in income apply.

Sawyer uses the Insolvency Worksheet to determine that the total liabilities immediately before the cancellation were $$15,000$ and the FMV of the total assets immediately before the cancellation was $$7,000.$ This means that immediately before the cancellation, Sawyer was insolvent to the extent of $$8,000($$$15,000$ total liabilities minus $$7,000$ FMV of the total assets$).$ Because the amount by which Sawyer was insolvent immediately before the cancellation was more than the amount of debt canceled, Sawyer can exclude the entire what amount canceled debt from income?

A$.$ $$5,000$

B$.$$$7,000$

C$.$ $$8,000$

D$.$$$15,000$