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B Inc. has agreed to acquire substantially all the assets of T Inc. in exchange for $90 million in B common stock and $10 million

B Inc. has agreed to acquire substantially all the assets of T Inc. in exchange for $90 million in B common stock and $10 million in non- voting B preferred stock. B will also assume $20 million in T debt in connection with the deal. Does the deal qualify as a tax- free reorganization? If not, what could be changed so it does?

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