$46.$ 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 com$-$mon stock?