Mr. Cougar owns 1,000 shares of Western Corporation common stock, which it purchased on March 8, 2011, for $12,000. In 2022, Mr. Cougar buys and sells Western Corporation stock as follows. On October 3, Cougar purchases an additional 300 shares fo $3,000. On October 12, he sells the original 1,000 shares acquired in 2011 for $8,500. On November 1, he purchases an additional 500 shares for $4,000. Read the requirements. Requirement a. What is Mr. Cougar's recognized gain or loss as a result of the sale on October 12? Amount Gain or loss Gain or loss to be recognized Requirement b. What are the basis and the holding period of the stock he continues to hold? (Do not round interim calculations. Only round the amount you input in the input field to the nearest dollar.) Basis Holding period begins 300 purchased on October 3, 2022 500 purchased on November 1, 2022 Requirement c. How would your answers to Parts a and b change if the stock Cougar purchases during 2022 is Western nonvoting, nonconvertible, preferred stock instead of Western common stock? Are nonvoting, nonconvertible preferred stock substantially identical to common stock in the same corporation? Under this scenario, would Cougar recognize a gain or a loss? Under this scenario, what is the amount that Cougar would recognize? Complete the table below to show Cougar's basis and the holding period of the stock it continues to hold assuming that the stock held is nonvoting, nonconvertible, preferred stock instead of Western common stock. Holding period begins Basis 300 purchased on October 3, 2022 500 purchased on November 1, 2022

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bhavesh

Mahan purchases 1,000 shares of Bluebird Corporation stock on October 3, 2022, for $280,000. On December 12, 2022, Mahan purchases an additional 750 shares of Bluebird stock for $196,000. According to market quotations, Bluebird stock is selling for $280 per share on 12/31/22. Mahan sells 500 shares of Bluebird stock on March 1, 2023, for $156,800. a. What is the adjusted basis of Mahan's Bluebird stock on December 31, 2022? Feedback Check My Work b. What is Mahan's recognized gain or loss from the sale of Bluebird stock on March 1, 2023, assuming the shares sold are from the shares purchased on December 12, 2022? In your computations, round the per share amount to the nearest whole dollar and use the rounded amount in subsequent computations. Mahan's recognized gain ✓is $ Feedback Check My Work Partially correct c. What is Mahan's recognized gain or loss from the sale of Bluebird stock on March 1, 2023, assuming Mahan cannot adequately identify the shares sold? Mahan has a recognized…