Bishop contributes undeveloped land to a business entity in January for a 40% ownership interest. Bishop's basis for the land is $140,000, and the fair market value is $600,000. The business entity was formed three years ago by Petula and Rene, who have equal ownership. The entity is successful in getting the land rezoned from agricultural to residential use, but the owners decide to sell the land so that the entity can invest in another project. In August, the land is sold for $650,000. Determine the tax consequences of the sale of the undeveloped land for the business entity and the three owners if the entity is organized as: a. A C corporation: