On January 1, 2019, Kinney, Inc., an S corporation, reports $18,400 of accumulated E & P and a balance of $46,000 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 $23,000.

Kinney distributes $27,600 to each shareholder on July 1, and it distributes another $13,800 to each shareholder on December 21. How are the shareholders taxed on the distributions? Ignore the 20% QBID.

Do not round intermediate computations. If required, round your final answers to the nearest dollar.

Erin and Frank each report $____dividend income for the July 1 distribution and $______each for theDecember 21distribution. Assuming that the shareholders have sufficient basis in their stock, both Erin and Frank each receive atax-free/taxable$_______distribution from AAA.