On January 1, 2015, Kinney, Inc., an electing S corporation, holds $5,000 of AEP and $8,000 in AAA.Kinney has two shareholders, Eric and Maria, each of whom owns 500 shares of Kinneys stock. Kinneys 2015 taxable income is $5,000. Kinney distributes $6,000 to each shareholder on JULY 1, 2015, and distributesanother $3,000 to each shareholder on DECEMBER 21. How are the shareholders taxed on the distribution?