Which tax attributes are reduced and by how much

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During bankruptcy, US Corporation debt was reduced from $780,000 to $400,000. USA Corporation's assets are valued at $500,000. USA's NOL carryover was $400,000.

a. Is USA Corporation required to report any income from the discharge of its debts?

b. Which tax attributes are reduced and by how much? Assume USA did not make any special elections when reducing its attributes.

Reference no: EM13127909

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