C corp sale of depreciated assets to related S corp

I have nagging concern on this issue. Client is the sole shareholder of an existing C corp with a variety of equipment assets, most of which are pretty fully depreciated. In order to pursue a developing business opportunity he, along with another person, have created a new corporation for which they plan on making an S corp election shortly. The new S corp will perform some of the same services of the old C corp, but will also being engaged in other businesses. The new S corp will acquire, at FMV, many of the equipment assets of the old C corp. The old C corp will continue to operate albeit in a reduced fashion. Other than the C corp accounting for any income above basis from the sale of these assets, I don't see a tax consequence. Am I missing something?