Reorganization Problem 2. T holds two business assets, X (with a basis of 30 and a value of 100) and Y (with a basis of 70 and value of 5). T also has outstanding debt of $10 (held by C). Tis wholly owned by A whose basis for his T stock is 50 (with a value of $95). Acquiring corporation P will acquire T's assets in what is assumed to be a qualified section 368 reorganization. If T transfers only the X business to P for $100 of P voting stock (P does not assume T's debt to C) in a Type C reorganization. T then sells $10 of P stock and pays off with the proceeds. T then liquidates, distributing the $90 of P stock and the Y business (worth $5) to A. Describe the consequences of this reorganization transaction to T, T's shareholder A & P. Reorganization Problem 2 Workspaer Transferor corporation (1) ... Transforor Corporatior's shareholder. (A).. () Acquiring Corporation (P) Reorganization Problem 2. T holds two business assets, X (with a basis of 30 and a value of 100) and Y (with a basis of 70 and value of 5). T also has outstanding debt of $10 (held by C). Tis wholly owned by A whose basis for his T stock is 50 (with a value of $95). Acquiring corporation P will acquire T's assets in what is assumed to be a qualified section 368 reorganization. If T transfers only the X business to P for $100 of P voting stock (P does not assume T's debt to C) in a Type C reorganization. T then sells $10 of P stock and pays off with the proceeds. T then liquidates, distributing the $90 of P stock and the Y business (worth $5) to A. Describe the consequences of this reorganization transaction to T, T's shareholder A & P. Reorganization Problem 2 Workspaer Transferor corporation (1) ... Transforor Corporatior's shareholder. (A).. () Acquiring Corporation (P)