Anne and Paul are shareholders of Android Corporation. Each has a stock basis of $10,000. Android has $12,000 of current E&P and $5,000 of accumulated E&P. Android distributes $3,000 to Anne on July 31 and to Paul $33,000 On December 1. What are the tax consequences of the distribution?

(a) What is Anns dividend income (if any)?

(b) What is Anns capital gain? (if any)?

(c) What is Pauls dividend income (if any)?

(d) What is Pauls capital gain (if any)?