Bryan, who is 45 years old, had some surprise medical expenses during the year. to pay for these expenses (which were claimed as itemized deductions on his tax return), he received a $20,000 distribution from his traditional ira (he has only made deductible contributions to the ira). assuming his marginal ordinary income tax rate is 15%, what amount of taxes and/or early distribution penalties will bryan be required to pay on this distribution?

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?