LO.6 On January 1, 2015, Kinney, Inc., an S corporation, reports $4,000 of accumu- lated E&P and a balance of $10,000 in AAA. Kinney has two shareholders Erin and Frank, each of whom owns 500 shares of Kinney's stock. Kinney's nonse- parately stated ordinary income for the year is $5,000. Kinney distributes $6,000 to each shareholder on July 1, and it distributes another $3,000 to each shareholder on December 21. How are the shareholders taxed on the distributions