Question: Mickey Hart borrowed $ 1 0 , 0 0 0 from a local credit union in 2 0 2 2 to purchase a jet ski.

Mickey Hart borrowed $10,000 from a local credit union in 2022 to purchase a jet ski. He lost
his job in 2024 and was unable to make the payments related to the remaining $3,000
balance on this loan. The credit union decided to cancel the remaining amount due on the
loan.
Required:
What are the tax consequences to Mickey due to the cancelled loan with a $5,000 balance?
Mickey Hart borrowed $10,000 from a local credit union in 2022

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