On January 1 of the current year, Quail Corp., an accrual-basis, calendar-year C corporation, had accumulated earnings and profits (E & P) of $20,000. On December 31 of the current year, Quail Corp. has current E & P of $24,000, earned evenly throughout the year. Ray and Devi were sole equal shareholders of Quail throughout the year. Quail made two distributions to shareholders during the year: $30,000 on July 1 and $30,000 on December 31. How much of the December 31 distribution is taxable dividend income for Devi?

$7,000

$11,000

$6,000

$1,000