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Target Corporation was merged into existing Parent Corporation. As a result of the merger, Target Corporations shareholders received common stock in Parent Corporation having a

Target Corporation was merged into existing Parent Corporation. As a result of the merger, Target Corporations shareholders received common stock in Parent Corporation having a fair market value of $300,000, and non-convertible bonds of Parent Corporation having a fair market value of $700,000. What type of reorganization has taken place?

a. Type A

b. Type C

c. Type D

d. none of the above.

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