Joe was notified on July 1, 2018, that Sic, Inc. stock he purchased from Sic, Inc. as one of their first investors on October 1, 2016, for $300,000 had become worthless. Total stock outstanding when he originally invested was $990,000. While he perceived that the investment was risky, he did not anticipate that the corporation would declare bankruptcy. He will not receive anything from the bankruptcy proceedings. What is his cost basis? What is his gain or loss to be on his federal tax return?