On January 1, 2022, Kinney, Inc , an S corporation, reports $31,200 of accumulated E P and a balance of $78,000 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 $39,000 Kinney distributes $46,800 to each shareholder on July 1 , and it distributes another $23,400 to each shareholder on December 21 How are the shareholders taxed on the distributions Ignore the 20 QBI deduction 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 the December 21 distribution Assuming that the shareholders have sufficient basis in their stock, Erin and Frank each receive a q distribution from AAA

Question

On January 1, 2022, Kinney, Inc , an S corporation, reports $31,200 of accumulated E    P and a balance of $78,000 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 $39,000  Kinney distributes $46,800 to each shareholder on July 1 , and it distributes another $23,400 to each shareholder on December 21   How are the shareholders taxed on the distributions  Ignore the 20  QBI deduction  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 the December 21 distribution  Assuming that the shareholders have sufficient basis in their stock, Erin and Frank each receive a q distribution from AAA

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On January 1, 2022, Kinney, Inc., an S corporation, reports $31,200 of accumulated E & P and a balance of $78,000 in AAA. Kinney has

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