CH 012A Extra Credit eBook Calculator Problem 12-28 (Algorithmic) (LO. 6) 1. EX.12-16.Algo 2. EX.12-17.Algo 3. EX.12-19.Algo 4. EX.12-20.Algo 5. EX.12-21.Algo 6. EX.12-22.Algo 7. PR.12-24.Algo 8. PR.12-28.Algo On January 1, 2017, Kinney, Inc., an S corporation, reports $7,200 of accumulated E & P and a balance of $18,000 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 $9,000 Kinney distributes $10,800 to each shareholder on July 1, and it distributes another $5,400 to each shareholder on December 21, How are the shareholders taxed on the distributions? Do not round intermediate computations. If required, round your final answer 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, both Erin and Frank each receive a tax-free distribution from AAA. Check My Work Previous Progress: 8/8 items Assignment Score: 74.67% Save and Exit Submit Assignment for Grading