Requirement. Assume that when Patterson was formed, Jordan transferred his $600,000 to the corporation for $250,000 of Patterson stock and $350,000 in Patterson notes. The notes are repayable in eight annual installments of $43,750 plus 8% annual interest on the unpaid balance. During the current year, Patterson gives Jordan $43,750 in repayment of the first note plus $28,000 interest. $ 28,000 Taxable income reported by Jordan = Taxable income reported by Patterson Corporation =