Al Owns Stock with an Adjusted Basis of $100,000 and a Fair

question 61

Multiple Choice

Al owns stock with an adjusted basis of $100,000 and a fair market value of $300,000.He gives the stock to Jane on July 1, 2011.When Jane dies, the fair market value of the stock is $900,000.Jane's will provides that Al is to receive the stock.Which of the following is false?

• A)If Jane dies on June 1, 2012, Al's basis for the stock is $100,000.
• B)If Jane dies on August 1, 2012, Al's basis for the stock is $900,000.
• C)If Jane dies on June 15, 2012, Al's basis is $300,000.
• D)If Jane dies on July 1, 2012, Al's basis is $100,000.
• E)All of the above are true.

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Fixed-price Policy

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