ABC Corporation was initially formed with cash contributions from five unrelated shareholders, each of whom contributed $$10,000$ in exchange for $20\%$ of ABC$$s voting common stock. The shareholders have made no further contributions. Assume that none of the shareholders are dealers in stock so that their stock investment is a capital asset. After several years of operations, the corporation adopts a plan of complete liquidation and distributes assets with a basis to the corporation with a basis to the corporation of $$50,000$ and a fair market value of $$125,000.$ Thus, each shareholder receives $$25,000$ of the corporate assets upon liquidation. At the time of liquidation, the corporation had $$125,000$ of its current earnings and profits account and no accumulated earnings and profits.

A$.$ What are the tax consequences to the corporation and its shareholders upon liquidation?

B$.$How would your answer change if the fair market value of the assets distributed in liquidation was $$30,000$ instead of $$125,000?$