Mr. Giraffe owns 5,000 shares of Highland Corporation commonstock, which it purchased on March 8, 2011, for

$ 50,000. On October 3, 2019, Tiger purchases an additional 2,000 shares for $ 18,000. On October 12, 2019,

he sells the original 5,000 shares for $ 37500. On November 1, 2019, he purchases an additional $1500 shares for

$10,500.

a) What is Mr. Giraffe's recognized gain or loss as a result of the sale on October 12, 2019?

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 Giraffe purchases during 2019 is Highland nonvoting, nonconvertible, preferred stock instead of Highland commonstock?