Joe owns 100% of Green Corporation (E & P) of $500,000 and 100% of Navy Corporation (E & P of $400,000). Joe sells 100 shares in Green (basis of $40,000) to Navy for $70,000, its fair market value. Joe purchased the stock in Green six years ago. Joe has:
a. A long-term capital gain of $30,000
b. A long-term capital gain of $70,000
c. Dividend income of $30,000
d. Dividend income of $70,000
e. None of the above