Anna inherited 100 shares of Kilo stock from her grandfather, who had purchased the stock on January 23, Year 1, for $48 per share. Anna's grandfather died on February 12, Year 2, and the fair market value of the stock on the date of death was $60 per share. The executor of the estate did not elect the alternate valuation date. The stock was distributed to Anna on August 1, Year 2, when the FMV was $57 per share. Anna sold the Kilo sotck on May 15, Year 3, for $62 per share. Tax basis & holding