Mr. Hippo owns 50,000 shares of East West Corporation commonstock, which it purchased on March 8, 2011, for $1,000,000. On October 3, 2019, Hippo purchases an additional 30,000 shares for $540,000. On October 12, 2019, he sells the original 50,000 shares for $925,000. On November 1, 2019, he purchases an additional 5,000 shares for $80,000. a. What is Mr. Hippo'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 Hippo purchases during 2019 is East West nonvoting, nonconvertible, preferred stock instead of East West commonstock?