Nicholas bought land from meredith for $150,000. nicholas paid $50,000 cash and gave meredith an 8% note for $100,000. the note was to be paid over a five-year period. when the balance on the note was $80,000, meredith began having financial difficulties. to accelerate her cash inflows, meredith agreed to accept $60,000 cash from nicholas in final payment of the note principal.
a. nicholas must recognize $20,000 ($80,000 - $60,000) of gross income.
b. meredith must recognize gross income of $20,000 ($80,000 - $60,000) from discharge of the debt.
c. nicholas is not required to recognize gross income, but must reduce his cost basis in the land to $130,000.
d. nicholas is not required to recognize gross income, since he paid the debt before it was due.
e. none of these choices are correct.

$527.7.if the following was the question  $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?