Fred Zorn died on January 5, 2007, bequeathing his entire $2,000,000 estate to his sister, Ida. The alternate valuation date was validly elected by the executor of Fred’s estate. Fred’s estate included 2,000 shares of listed stock for which Fred’s basis was $380,000. This stock was distributed to Ida nine months after Fred’s death. Fair market values of this stock were
|
At the date of Fred’s death |
$400,000 |
|
Six months after Fred’s death |
450,000 |
|
Nine months after Fred’s death |
480,000 |
Ida’s basis for this stock is
- $380,000
- $400,000
- $450,000
- $480,000