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?

On february 10, 2014, after issuance of its financial statements for 2013, higgins company entered into a financing agreement with cleveland bank, allowing higgins company to borrow up to $6,000,000 at any time through 2016. amounts borrowed under the agreement bear interest at 2% above the bank's prime interest rate and mature two years from the date of loan. higgins company presently has $2,250,000 of notes payable with star national bank maturing march 15, 2014. the company intends to borrow $3,750,000 under the agreement with cleveland and liquidate the notes payable to star national bank. the agreement with cleveland also requires higgins to maintain a working capital level of $9,000,000 and prohibits the payment of dividends on common stock without prior approval by cleveland bank. from the above information only, the total short-term debt of higgins company as of the december 31, 2013 balance sheet date is