Sanjay contributes land to a business entity in January 2014 for a 30% ownership interest. Sanjay's basis for the land is $60,000, and the fair market value is $100,000. The business entity was formed three years ago by Polly and Rita, who have equal ownership. The entity is unsuccessful in getting the land rezoned from agricultural to residential. In October 2014, the land is sold for $110,000. Determine the tax consequences of the sale of the land for the entity and its owners if the entity is organized as:
a. A C corporation.
b. An S corporation.
c. A partnership.