Nardine Corporation acquired Tabor Corporation pursuant to a statutory merger under state law. As a result of the merger, Tabor Corporation's former shareholders received common stock in Nardine having a value of $300,000, long-term bonds of Nardine with a principal amount (and fair market value) of $400,000, and cash of

$300,000. What type of reorganization has taken place? Describe the tax consequences to Tabor Corporation, its former shareholders, and Nardine Corporation.