Jeremiah runs a small family restaurant and has assets of $800,000 and debts of $1,500,000, making...

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Jeremiah runs a small family restaurant and has assets of $800,000 and debts of $1,500,000, making his business insolvent. Jeremiah was able to negotiate with his creditors to forgive a debt of $1,000,000. Before the debt forgiveness, Jeremiah had the following tax attributes: Adjusted basis of his business property NOL from the current year NOL from previous years $500,000 $300,000 $400,000 Capital losses from previous years $200,000 Jeremiah will need to adjust his tax attributes by the portion of the debt forgiveness not included in income. Jeremiah elects to adjust the basis of business property first. What is Jeremiah's basis in business property and capital losses after the debt forgiveness? A) Business property = $500,000; Capital loss = $200,000 B) Business property = $0; Capital loss = $200,000 C) Business property = $500,000; Capital loss = $0 D) Business property = $0, Capital loss = $0 Jeremiah runs a small family restaurant and has assets of $800,000 and debts of $1,500,000, making his business insolvent. Jeremiah was able to negotiate with his creditors to forgive a debt of $1,000,000. Before the debt forgiveness, Jeremiah had the following tax attributes: Adjusted basis of his business property NOL from the current year NOL from previous years $500,000 $300,000 $400,000 Capital losses from previous years $200,000 Jeremiah will need to adjust his tax attributes by the portion of the debt forgiveness not included in income. Jeremiah elects to adjust the basis of business property first. What is Jeremiah's basis in business property and capital losses after the debt forgiveness? A) Business property = $500,000; Capital loss = $200,000 B) Business property = $0; Capital loss = $200,000 C) Business property = $500,000; Capital loss = $0 D) Business property = $0, Capital loss = $0