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:

Product

An item or service created as a result of a process, which is offered in the market to satisfy the needs or wants of a customer.

Premium

Additional payment higher than the normal cost, often for enhanced benefits or services in various contexts, such as insurance or memberships.

Complimentary Approach

A sales strategy that involves giving praise or providing free products or services to potential customers to engender goodwill and facilitate sales.

Opinion Approach

Opinion approach is a sales technique where the salesperson starts a conversation by asking the customer's opinion, aiming to engage and gather valuable insights.