T Corporation has 100 shares of stock outstanding owned, as indicated below T has accumulated E&P of $40,000. Buck Smith is unrelated to Tina Smith, and John Brown is unrelated to Lucy Brown. The Smiths and the Browns are not related. During the year, the corporation redeemed 27 shares from the shareholders as shown below, paying $2,000 for each share redeemed. Each shareholder had a $250 basis in each share of stock owned prior to the redemption.

Name	Shares Before	Shares Redeemed
Buck Smith	40	8
Tina Smith	10	8
John Brown	45	17
Lucy Brown	5	4

a) What are the tax consequences of the redemption to Buck Smith? Indicate the income, its character, and the basis of his remaining stock.

b) What are the tax consequences of the redemption to John Brown? Indicate the income, its character, and the basis of his remaining stock.