Salkey Company has two owners, Gus and Jack, who are father and son. Gus owns 100 shares which he acquired in 2013 for \(\$ 15,000\). Jack owns 100 shares which he acquired in 2015 for \(\$ 21,000\). Salkey's current E\&P in 2018 is \(\$ 70,000\). On March 18,2018 , Salkey redeemed 35 shares from Gus in return for land worth \(\$ 50,000\) and an adjusted basis of \(\$ 10,000\).

a. Does the redemption qualify as a sale?

b. What are the income tax consequences to Gus, Jack, and Salkey Company?

c. Would your answers to

(a) and

(b) differ if Gus and Jack were brothers? If so, how?