uail Corporation was created six years ago 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 12,000 shares of 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 "0". a. Complete the computations below for Kasha and Frank regarding this transaction. Kasha: Realized. Gain/Loss $1,620,000 Frank: Realized Gain/Loss Recognized Gain/Loss Bond $ Postponed Gain/Loss Basis In Stock Recognized Gain/Loss Postponed. Gain/Loss Basis In Stock $180,000 Bond $ How do Kasha and Frank treat this transaction for income tax purposes? Kasha: Ordinary income: $ Dividend income: $ Capital gain income: Frank: Ordinary income: $ Dividend income: $ Capital gain income: b. Complete the statement below regarding how Quail and Covey should treat this transaction, including Covey's basis in the assets it receives from Quail. Quail recognizes $ gain or loss on the reorganization. Covey's basis in the Quail assets is ( basis of