On January 1, 2022, Kinney, Inc., an S corporation, reports $9,600 of accumulated E \& P and a balance of $24,000 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 $12,000. Kinney distributes $14,400 to each shareholder on July 1 , and it distributes another $7,200 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 s 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 distribution from AAA