Each of C Corp.s and D Corp.s entire outstanding capital stock consists of 100 shares of common stock. Peter owns 60 shares of C Corp., and 50 shares of D Corp. He sells 30 shares of C Corp., with an aggregate cost basis of $10,000, to D Corp. for $50,000. Each of C Corp. and D Corp. has accumulated E&P of more than $50,000. What are the tax consequences to Peter?

This a corporate taxation question. Apply Sections 301, 304, and 302 of the IRC.