Dee is a very good friend of yours and your tax client. She was wearing an expensive necklace when you were out for dinner recently. She mentioned that she had received some stock from her late aunt, who passed away earlier in the year. The fair market value of the stock at the time of her aunt’s death was \($17,000.\) Dee sold the stock for \($25,000\) and purchased the necklace and some other jewelry. She tells you an inheritance is not taxable income. Provide an explanation for Dee that explains the tax consequences of these events.