Mr Cheeta owns $80,000$ shares of Valley Corporation common stock, which was purchased on March $8,2011,$ for $$480,000.$ In $2023,$ Mr$.$ Cheeta buys and sells Valley Corporation stock as follows. On October $3,$ Cheeta purchases an additional $48,000$ shares for $$96,000.$ On October $12,$ he sells the original $80,000$ shares acquired in $2011$ for $$360,000.$ On November $1,$ he purchases an additional $8,000$ shares for $$12,000.$

Read the requirements.

Requirement a$.$ What is Mr$.$ Cheeta's recognized gain or loss as a result of the sale on October $12?$

Amount

Gain or loss

Gain or loss to be recognized

Requirements

a$.$ What is Mr$.$ Cheeta'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 Cheeta purchases during $2023$ is Valley nonvoting, nonconvertible, preferred stock instead of Valley common stock?