T is a closely held corporation with 100 shares of voting common stock outstanding, which are owned

-50 shares by A(adjusted basis $200)

-30 shares by B (adjusted basis $400)

-20 shares by C (adjusted basis $150)

T owns following assets

Operating Assets ab $700, FMV 900

Non Operating Assets ab $200 FMV 300

Liabilities $200 (20 year bonds held by L)

Accum. E&P - $400

What are the tax consequences to T,P,A,B,C and L?

Question (1) T metges into P under state law. T's shareholders receive prorata $1000 FMV of P's nonvoting, nonparticipating, nonconvertible 8% cumulative preferred stock.

(2)T's debt to L is either $1000 or $1300

(3)T and P are foreign corporations and the merger occurs under the laws of England?

(4)same as (1) but instead of preferred stock, T's shareholders reveive pro rata $200 FMV of P's two year notes, $400 FMV of P's 20-year registered bonds and $400 FMV of P's voting common stock

(5) before the merger, P's voting common stock is 100 percent owned by E, A's father, after the merger, E owns 70% of P's voting stock.