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I am little confused about determining the gain and basis for the stockholder when liability is involved:

For example:
Classic Inc., a C corporation, distributed property to its sole shareholder as part of a complete liquidation. Classic’s adjusted basis in the property was $660,000. The property had a fair market value of $730,000 at the time of the distribution and was subject to a liability of $700,000. The shareholder’s tax basis in Classic’s stock was $740,000. As a result of the distribution of the property, Classic will recognize a:

I know the answer is 70k gain for the corporation.

But for the shareholder who is assuming this liability, how does this affect the gain or loss? Because in the book, they say to use the FMV – stock basis = capital gain, but should we ignore the liability?

Also for dividend distribution:

Fox, the sole shareholder in Fall, a C corporation, has a tax basis of $60,000. Fall has $40,000 of accumulated positive earnings and profits at the beginning of the year and $10,000 of current positive earnings and profits for the current year. At year-end, Fall distributed land with an adjusted basis of $30,000 and a fair market value (FMV) of $38,000 to Fox. The land has an outstanding mortgage of $3,000 that Fox must assume. What is Fox’s tax basis in the land?

I know the basis = 38k, but does not liability affect the basis in any way?

But how will the liability affect the dividend income?

Thank you in advance