In 2022, TJ Smoothie's owners decide it will be a good time to double its locations to four in total. However, the company does not have sufficient capital to do so. Therefore, Tom asks his mother Mary for a loan of $200,000. Mary agrees, but insists that she receives 200 preferred shares at a par value of $1,000 per share in exchange for the $200,000. Three years later, TJ Smoothie is doing quite well and Mary was looking to get some cash back to invest in a retirement home. TJ Smoothie redeemed all of Mary's preferred stock. Assume the shareholders basis in the stock of TJ Smoothie is equal to what was calculated in Problem 1 b) above. a) What are the tax consequences of the redemption to Mary and TJ Smoothie? b) Same facts as (a), except TJ Smoothie also redeems all 25 shares of Mary's common stock