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

  1. $380,000
  2. $400,000
  3. $450,000
  4. $480,000