Farhad canceled a note issued by Emma (Farhad's niece) that arose in connection with the sale of property. At the time of the cancellation, the note had a basis to Farhad of $30,000, a face amount of $55,000, and a fair market value of $42,000.
Presuming that the initial sale by Farhad qualified as an installment sale, how much gain does the cancellation result in for Farhad?