C:$4-49$ Effect of Redemption on $E$&$P.$ White Corporation has $100$ shares of stock outstanding. Ann owns $40$ of these shares, and unrelated shareholders own the remaining $60$ shares. White redeems $30$ of Ann's shares for $$30,000.$ In the year of the redemption, White has $$30,000$ of paid$-$in capital and $$80,000$ of E&P$.$

a$.$ How does the redemption affect White's E&P balance if the redemption qualifies for sale treatment?

b$.$ How does the redemption affect White's E&P balance if the redemption does not qualify for sale treatment?