A taxpayer will be able to exclude all the income from their canceled debt if they:

(A) Received a Form 1099-C with $17,400 in box 2 and $15,700 in box 7, and they were insolvent by $15,800.
(B) Had $11,500 of debt canceled. Immediately prior to the cancellation, they were insolvent by $12,000.
(C) Had a debt of $7,850 canceled. Immediately prior to the debt, they were insolvent by $6,500.
(D) Had a debt of $5,400 canceled. Immediately prior to the debt, they were insolvent by $2,750.