Mr. Cougar owns 1,000 shares of Western Corporation common stock, which was purchased on March 8, 2011, for \($12,000.\) In 2023, Mr. Cougar buys and sells Western Corporation stock as follows. On October 3, Cougar purchases an additional 300 shares for \($3,000.\) On October 12, he sells the original 1,000 shares acquired in 2011 for \($8,500.\) On November 1, he purchases an additional 500 shares for \($4,000\).

a. What is Mr. Cougar’s recognized gain or loss as a result of the sale on October 12?

b. What are the basis and the holding period of the stock he continues to hold?

c. How would your answers to Parts a and b change if the stock Cougar purchases during 2023 is Western nonvoting, nonconvertible, preferred stock instead of Western common stock?