On January $1,2024,$ Kinney, Inc., an S corporation, reports $$4,000$ of accumulated E & P and a balance of $$10,000$ in AAA. Kinney has two shareholders, Erin and Frank, each of whom owns $500$ shares of Kinney's stock. Kinney's nonseparately 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? Ignore the $20\%$ QBI deduction.

Round any division to five decimal places. If required, round final answers to the nearest dollar.

Erin and Frank each report $fill in the blank $1$ dividend income for the July $1$ distribution and $fill in the blank $2$ each for the December $21$ distribution. Assuming that the shareholders have sufficient basis in their stock, Erin and Frank each receive a

tax$-$freetaxabletax$-$free

$fill in the blank $4$distribution from AAA.