Kinney, inc., an electing s corporation, holds $5,000 of aep and $9,000 in aaa at the beginning of the calendar tax year. kinney has two shareholders, eric and maria, each of whom owns 500 shares of kinney's stock. kinney's taxable income is $6,000 for the year. kinney distributes $6,000 to each shareholder on february 1, and it distributes another $3,000 to each shareholder on september 1. how is eric taxed on the 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.

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. in the context of this scenario, which of the following statements is true? a. the industry for cell phones with holographic keyboards will face greater competition than the tablet industry. b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation. c. while the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits. d. the industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.