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.

Question

Quizplus · Accepted Answer

If Jane dies on June 15, 2012, Al's basis would be the fair market value at Jane's death, which is $900,000, not $300,000.

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