eBook Problem 7-21 (LO. 2) Quail Corporation was created in 2005 through contributions from Kasha ($900,000) and Frank ($100,000). In a transaction qualifying as a reorganization, Quail exchanges all of its assets currently valued at $1,800,000 (basis of $1,200,000) for Covey Corporation stock valued at $1,700,000 plus $100,000 in Covey bonds. Quail distributes the Covey stock and bonds proportionately to Frank and Kasha in exchange for their stock in Quail. Quail's current and accumulated E &P before the reorganization amounts to $70,000 If an amount is zero, enter "O". a. Complete the computations below for Kasha and Frank regarding this transaction. Kasha: Recognized Gain/Loss Realized Basis in Gain/Loss Gain/Loss Stock $1,620,000 Bonds Frank: Recognized Gain/Loss Realized Basis in Gain/Loss Gain/Loss Stock $180,000 Bond The character of Kasha and Frank's gain is Select