Question: Sally has found it very difficult to repay her loans. Because of these difficulties, the bank decided to forgive one of her most recent loans,

Sally has found it very difficult to repay her loans. Because of these difficulties, the bank decided to forgive one of her most recent loans, an amount of $89,000. After the loan was discharged, Sally had total assets of $240,000 and her remaining loans totaled $223,000. What amount must Sally include in her gross income?

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