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Problem 22-28 (Algorithmic) (LO. 6) On Januery 1, 2018,...

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Accounting

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Problem 22-28 (Algorithmic) (LO. 6) On Januery 1, 2018, Kinney, Inc., an S corporation, reports $32,000 of accumulated E& P and a balance of $80,000 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 ls $40,0o6. Kinney distributes $48,000 to each shareholder on July 1, and it distributes another $24,000 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 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 distribution from AAA

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