On December 24th of the preceding year, Yonkers and Ann incorporated Akona with contributions of $100.00 cash each. On December 31st of the preceding year, Akona made a $5.00 distribution to each shareholder. There was no income or expenses in the preceding year. In the current year, Akona again made $5.00 distributions to each shareholder. Please describe the tax treatment of the $5.00 distributions in both years to all parties.