Qwik Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service

Qwik Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil change- related services represent 75% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 25% of its sales and provides a 60% contribution margin ratio. The company's fixed costs are $15,000,000 (that is, $75,000 per service outlet).

Jimmy has fallen on hard times recently. Last year he borrowed $265,000 and added an additional $86,000 of his own

Jimmy has fallen on hard times recently. Last year he borrowed $265,000 and added an additional $86,000 of his own funds to purchase $351,000 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 $238,300. For each of the following independent situations, indicate the amount Jimmy must include in gross income a. The real estate is worth $178,000 and Jimmy has no other assets or liabilities. b. The real estate is worth $245,700 and Jimmy has no other assets or liabilities. c.The real estate is worth $200,200 and Jimmy has $48,300 in other assets but no other liabilities.