LO.1, 2, 3 On September 30, Jade Corporation, a calendar year taxpayer, sold a parcel of land (basis of $300,000) for a $900,000 note. The note is payable in five installments, with the first payment due next year. Because Jade did not elect out of the installment method, none of the $600,000 gain is taxed this year.

Jade Corporation had a $400,000 deficit in accumulated E & P at the beginning of the year. Before considering the effect of the land sale, Jade had a deficit in current E & P of $100,000.

Robert, the sole shareholder of Jade, has a basis of $150,000 in his stock. If Jade distributes

$950,000 to Robert on December 31, how much income must he report for tax purposes?