Al owns stock with an adjusted basis of $13,000 and a fair market value of $24,000.
He gives the stock to Mary, his sister, on July 1, 2021. Mary is suffering from terminal
cancer. When Mary dies, the fair market value of the stock is $26,000. Mary’s will
provides that Al is to receive the stock.
a. What is Al’s basis in the stock if Mary dies on June 1, 2022?
b. What is Al’s basis in the stock if Mary dies on August 1, 2022?