Mr. Hippo owns 40,000 shares of Valley Corporation common stock, which it purchased on March 8,2011 , for $600,000. In 2021 , Mr. Hippo buys and sells Valley Corporation stock as follows. On October 3, Hippo purchases an additional 16,000 shares for $208,000. On October 12 , he sells the original 40,000 shares acquired in 2011 for $520,000. On November 1 , he purchases an additional 16,000 shares for $192,000. Read the Requirement a. What is Mr. Hippo's recognized gain or loss as a result of the sale on October 12? Requirements a. What is Mr. Hippo'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 Hippo purchases during 2021 is Valley nonvoting, nonconvertible, preferred stock instead of Valley common stock