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4.Allison owns 1000 shares of XYZ stock that she purchased in 1995 for $20,000. Allisons cousin, Robert, has been diagnosed with pancreatic cancer and is
4.Allison owns 1000 shares of XYZ stock that she purchased in 1995 for $20,000. Allisons cousin, Robert, has been diagnosed with pancreatic cancer and is expected to die within three months. Allison informs Robert that she wishes to donate the XYZ stock to him, and for him to bequeath the XYZ stock to her in his last will and testament. Robert accepts the stock and establishes the testamentary bequest to Allison so that she will inherit the stock. Upon Roberts death the date of death value of the stock was $110,000. By the time the estate was closed and Allison received her inheritance, the stock was worth $ 125,000. Allison sold the stock 3 months later for $130,000. Her basis in the stock at the time of the sale is
A. $20,000
B. $110,000
C. $125,000
D. $130,000
E. None of the above.
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