Bay Corp. owns 2,050 shares of Indian Wolf Corporation common stock. Bay Corp. purchased the 2,050 shares on April 17, 2009, for $36,900. On December 8, 2014, Bay sells 1,300 shares for $16,250. On January 2, 2015, Bay Corp. buys 780 shares of Indian Wolf Corporation common stock for $10,140 and 175 shares of Indian Wolf Corporation preferred stock for $1,500. The preferred stock is nonvoting, nonconvertible.

Requirements

a. What is Bay's realized and recognized loss on the December 8 sale of stock?

b. What is Bay's basis and the holding periods of the stock?