On January 1, 2022, Kinney, Inc., an S corporation, reports $16,000 of accumulated E \& P and a balance of $40,000 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 $20,000. Kinney distributes $24,000 to each shareholder on July 1 , and it distributes another $12,000 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 $ distribution. Assuming that the shareholders have sufficient basis in their stock, Erin and Frank each receive a $ distribution from AAA