Melody Inherited 1,000 Shares of Corporation Zappa Stock from Her

question 119

Multiple Choice

Melody inherited 1,000 shares of Corporation Zappa stock from her mother who died on March 4 of the current year.Her mother paid $30 per share for the stock on September 2,2005.The FMV of the stock on the date of death was $65 per share.On September 4 of the current year,the FMV of the stock was $70 per share.Melody sold the stock for $85 per share on December 3.The estate qualified for,and the executor elected,the alternate valuation method for these and other assets in the estate.An estate tax return was filed.What was Melody's basis in the stock on the date of the sale?

• A)$30,000
• B)$65,000
• C)$70,000
• D)$85,000

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Definitions:

Counting Compulsion

An obsessive-compulsive behavior that involves an uncontrollable urge to count objects or actions.

Cleaning Compulsion

An obsessive need to clean or organize, often as a symptom of obsessive-compulsive disorder, where the action is driven by an attempt to reduce distress or anxiety.

Cognitive-Behavioral Theorist

A professional specializing in the study and application of cognitive-behavioral therapy, emphasizing the role of thinking and behavior in the development and treatment of psychological disorders.

Exposure And Response Prevention

A therapeutic strategy used primarily for obsessive-compulsive disorder that involves gradual exposure to anxiety-inducing stimuli combined with efforts to prevent the habitual response.