Indicate whether the following statements are "True" or "False" regarding the tax treatment of the discharge of indebtedness.

a$.$If the creditor reduces the debt as an act of love, affection, or generosity, the debtor has simply received a nontaxable gift.

TrueFalse

b$.$In many situations, the Code allows the debtor to reduce his or her basis in the assets by the realized gain from the discharge of indebtedness.

TrueFalse

c$.$A transfer of appreciated property $($fair market value is greater than adjusted basis$)$ in satisfaction of a debt is an event that triggers the realization of income.

TrueFalse

d$.$A shareholder's cancellation of the corporation's indebtedness to him or her usually is considered a taxable transaction.

TrueFalse