Quail Corporation was created in 2000 through contributions from Kasha ($900000) and Frank ($100000). In a transaction qualifying as a reorganization Quail exchanges all of its assets currently valued at $1.8 million (basis of $1.2 million) for 12000 shares of Covey Corporation stock valued at $1.7 million plus $100000 in Covey bonds. Quail distributes the Covey stock and bonds proportionately to Frank and Kasha in exchange for their stock in Quail. Quails current and accumulated E & P before the reorganization amounts to $70000.
Requirements: Use the Template for Option 1 (linked at the bottom of the page)for the Critical Thinking Assignment for this week. Clearly identify the requirement being addressed. Show or explain all calculations within the body of the submission document. This means that you must use formulas and links so that your thought process can be examined. Make good use of comments to convey your thought process as well.
No hard coding of solutions. Review the Critical Thinking grading rubric which may be found in the Module 3 folder to see how you will be

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