Anna inherited 100 shares of Juliett stock from her grandmother, who purchased the stock on March 22, Year 2 for $14 per share and the fair market value of the stock on date of death was $17 per share. The executor of the estate did not elect the alternate valuation date. The stock was transferred to Anna on September 1, Year 2 when the FMV was $18 per share. Anna sold the Juliett stock on February 15, Year 3 for $20 per share.