Mr. Cougar Owns 1,000 shares of Western Corporation common stock, which it purchased on March 8, 2011, for $12,000. On October 3, 2018, Cougar purchases an additional 300 shares for $3,000. On October 12, 2018, he sells the original 1,000 shares for $8,500. On November 1, 2018, it 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, 2018?

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 2018 is Western nonvoting, nonconvertible, preferred stock instead of Western common stock?