Zoe Corporation loans Beth, an employee, $$100,000$ on January $1,20$X$1$ on an interest free basis. The loan is repayable by Beth at the end of three $(3)$ years, i$.$e$.$ December $31,20$X$3.$ Assume the applicable federal rate with respect to such loan is $4$ percent.

A$.$ What are the consequences to Zoe Corp. for $20$X$1?$

B$.$ What are the consequences to Beth for $20$X$1?$