Assume all 20 Students in Income Tax II Class at Metro join hands and form an S Corporation named "Taxes R US" in year 2021 and contribute $10,000 each. Assume there are no nonresident aliens in this corporation. In the year 2021, Ian and Zach, starts taking distributions of $15,000 each without receiving any reasonable salary. Both these shareholders devote almost 100% of their time to this business. 

Please describe in detail, the tax implications on this distribution to the company and to the shareholders. Assume the business made money and has positive AAA account balance. Also assume no AEP and no OAA account balances.