) Alice Kemper is the sole shareholder in a closely held business. She sold her business to her key employee, Tom, in return for an agreement to pay an annunity as long as she lives. At Alices death, Toms basis in the business is equal to the

a. Fair market value of the business on the date Alice died

b. Amount of annuity payments made during Alices lifetime

c. Present value of payments to be made over Alices expected lifespan when the agreement was made

d. Future value of payments to be made over Alices expected lifespan when the agreement was made