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Problem $5-60($LO $5-2)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Jimmy has fallen on hard times recently. Last year he borrowed

$$319,000$ and added an additional $$72,500$ of his own funds to

purchase $$391,500$ of undeveloped real estate. This year the value of

the real estate dropped dramatically, and Jimmy's lender agreed to

reduce the loan amount to $$289,700.$

For each of the following independent situations, indicate the amount

Jimmy must include in gross income:

Note: Leave no answer blank. Enter zero if applicable.

Problem $5-60$ Part a $($Algo$)$

a$.$ The real estate is worth $$230,600$ and Jimmy has no other assets or liabilities.