On september 30, sinclair corporation, a calendar year taxpayer, sold a parcel of land (basis of $600,000) for a $1,500,000 note. the note is payable in three installments, with the first payment due next year. because sinclair did not elect out of the installment method, none of the $900,000 gain is taxed this year. sinclair corporation had a $510,000 deficit in accumulated e & p at the beginning of the year. before considering the effect of the land sale, sinclair had a deficit balance in current e & p of $140,000.susan, the sole shareholder of sinclair, has a basis of $400,000 in her stock. susan holds the sinclair corporation stock as an investment.
1. if sinclair distributes $1,000,000 to susan on december 31, how much income must she report for tax purposes?