Last year settled business card debt. We have a C-Corp and not sure where to add this on the 1120 Return. Would it be under other income?

“Last year settled business card debt. We have a C-Corp and not sure where to add this on the 1120 Return. Would it be under other income?“ You report Income from cancellation of business card debt “---->It depends on the situation; if the C-corporation cancels or forgives your debt to it, the canceled debt is dividend income to you on Form 1120 line 4. If you are a stockholder in the C- corporation and you cancel a debt owed to you by the corporation, you generally do not realize income. This is because the canceled debt is considered as a contribution to the capital of the corporation equal to the amount of debt principal that you canceled. However, income from cancellation of debt for the repurchase of a debt instrument for less than its adjusted issue price. However, for a reacquisition of an applicable debt instrument after December 31, 2008, and before January 1, 2011, a corporation can elect, under section 108(i), to defer the income from COD in connection with the election. If the corporation makes the election, the income is deferred and ratably included in income, on From 1120 line 10 over the 5-year period