Problem 12-26 (Algorithmic) (LO. 6, 7) On January 1, 2022, Kinney, Inc., an S corporation, reports $19,200 of accumulated E \& P and a balance of $48,000 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 $24,000. Kinney distributes $28,800 to each shareholder on July 1 , and it distributes another $14,400 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 \& X dividend income for the July 1 distribution and $X each for the December 21 distribution. Assuming that the shareholders have sufficient basis in their stock, Erin and Frank each receive a $X distribution from AAA