Joe Owns 100% of Green Corporation (E & P of $500,000)

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) Dividend income of $70,000.
B) A long-term capital gain of $70,000.
C) Dividend income of $30,000.
D) A long-term capital gain of $30,000.
E) None of the above.