Wash Sales. Cougar Corporation owns 1,000 shares of Western Corporation common stock, which it purchased on March 8, 2010, for $12,000. On October 3, 2016, Cougar purchases an additional 300 shares for $3,000. On October 12, 2016, it sells the original 1,000 shares for $8,500. On November 1, 2016, it purchases an additional 500 shares for $4,000. a. What is Cougar's recognized gain or loss as a result of the sale on October 12, 2016? b. What are the basis and the holding period of the stock Cougar continues to hold? c. How would your answers to Parts a and b change if the stock Cougar purchases during 2016 is Western nonvoting, nonconvertible, preferred stock instead of Western common stock?

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading struc…