E Corporation owns a highly profitable field of oil wells in Texas. E Corporation has a basis of 500 in the oil field, and the oil field has a fair market value of 1,000. A and B, individuals, own 50 shares each of the voting common stock of E Corporation, and there is no other class of stock of E Corporation stock outstanding. B has a basis of 500 in his common stock in E Corporation. P Corporation, an unrelated corporation, is interested in owning the oil field. P Corporation first buys all the common stock of B in E Corporation for 1,000. Then E Corporation distributes the oil field (worth 1,000) to P Corporation in complete redemption of P Corporation's stock in E Corporation. Will P Corporation recognize income with respect to the redemption transaction? Will E Corporation recognize any income or gain with respect to the redemption transaction?

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