T holds two business assets, X (with a basis of 30 and a value of 120) and Y (with a basis of 70 and a value of 50). T also has outstanding debt of $40 (held by C). T is wholly owned by A, whose basis for his T stock Is 50 (with a value of $130). Acquiring corporation P will acquire T's assets in what is assumed to be a qualified section 368 recognition. If T merges into P for $65 of P stock and $65 in cash, which cash and stock are distributed to A upon the surrender of A's T shares; and P assumes T's debt to C. 

Describe the consequences of this reorganization transaction to T, T's shareholder A & P.