Gold company was experiencing financial difficulties, but was not bankrupt or insolvent. the national bank, which held a mortgage on other real estate owned by gold, reduced the principal from $110,000 to $85,000. the bank had made the loan to gold when it purchased the real estate from silver, inc. pink, inc., the holder of a mortgage on gold's building, agreed to accept $40,000 in full payment of the $55,000 due. pink had sold the building to gold for $150,000 that was to be paid in installments over 8 years. as a result of the above, gold must: a. include $40,000 in gross income. b. reduce the basis in its assets by $40,000.c. include $25,000 in gross income and reduce its basis in its assets by $15,000.d. include $15,000 in gross income and reduce its basis in the building by $25,000.e. none of these.