In which case will the taxpayer be able to exclude all income from their canceled debt? The taxpayer received a Form 109-C with $18,400 in box 2 and $16,700 in box 7, and they were insolvent by $2,900 O A taxpayer had a debt of $5,400 canceled. Prior to the debt, they were insolvent by $2,750 O A taxpayer had $12,500 of debt canceled Prior to the cancellation, they were insolvent by $13.000 O A taxpayer had a debt of $8,750 canceled. Prior to the debt, they were insolvent by $7.500