Swift Corporation agreed to redeem some of the shares of two of its shareholders. It distributed land (basis $55,000 and fair market value $120,000) to Sam in exchange for part of his stock. Sam's basis in the redeemed stock was $25,000. Swift also distributed $240,000 cash to Allison in exchange for part of her stock. Allison's basis in the redeemed stock was $40,000. As a result of the redemptions, Sam's interest in the corporation declined from 20% to 15%, and Allison's interest declined from 70% to 60%. Determine the tax consequences to Swift, Sam, and Allison if Swift is:

a. A C corporation.

b. An S corporation.