On January 1, Year 2, Kinney, Inc , an electing S corporation, has $4,000 of AEP and a balance of $10,000 in AAA Kinney has two shareholders, Erin and Maine, each of whom owns 500 shares of Kinneys stock Kinneys Year 2 taxable income is $5,000 Kinney distributes $6,000 to each shareholder on February 1, Year 2, and distributes another $3,000 to each shareholder on September 1 How is Erin taxed on this distribution A $500 dividend income B $1,000 dividend income C $1,500 dividend income D $3,000 dividend income E None of the above

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On January 1, Year 2, Kinney, Inc , an electing S corporation, has $4,000 of AEP and a balance of $10,000 in AAA  Kinney has two shareholders, Erin and Maine, each of whom owns 500 shares of Kinneys stock  Kinneys Year 2 taxable income is $5,000  Kinney distributes $6,000 to each shareholder on February 1, Year 2, and distributes another $3,000 to each shareholder on September 1  How is Erin taxed on this distribution  A  $500 dividend income  B  $1,000 dividend income  C  $1,500 dividend income  D  $3,000 dividend income  E  None of the above

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On January 1, Year 2, Kinney, Inc., an electing S corporation, has $4,000 of AEP and a balance of $10,000 in AAA. Kinney has two

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