RIA RESEARCH EXERCISE Use the RIA Checkpoint research database to answer the following questions….

RIA RESEARCH EXERCISE Use the RIA Checkpoint research
database to answer the following questions. Cut and paste the relevant Internal
Revenue Code and Treasury Regulation section(s) into your solution and explain
how the authority answers the tax issue in question. Give the most specific
citation applicable [e.g., Sec. 168(a)(1)] that answers the question. Note: If
the answer can be found in both the code and regulations, you must provide both
authorities.

Billy’s Barbeque has assets of $60,000 and liabilities of
$100,000. To assist Billy’s, its bank agrees to reduce the amount due on a
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RIA RESEARCH EXERCISE Use the RIA Checkpoint research
database to answer the following questions. Cut and paste the relevant Internal
Revenue Code and Treasury Regulation section(s) into your solution and explain
how the authority answers the tax issue in question. Give the most specific
citation applicable [e.g., Sec. 168(a)(1)] that answers the question. Note: If
the answer can be found in both the code and regulations, you must provide both
authorities.

Billy’s Barbeque has assets of $60,000 and liabilities of
$100,000. To assist Billy’s, its bank agrees to reduce the amount due on a loan
from $65,000 to $50,000.

a. What code section and/or regulation specifically includes
discharges of debt in gross income?

b. What code section and/or regulation allows certain
discharges of debt to be excluded from gross income?

c. What code section and/or regulation defines the condition
that must be met to exclude a discharge of debt from gross income?

d. What code section and/or regulation limits the amount of
debt discharge that can be excluded?

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