Anna inherited 100 shares of Lima stock from her brother, who had purchased the stock on Jan 10, Year 1, for $28 per share. Anna brother died on Feb 1, Year 2. The fair market value of the stock on the date of death was $33 per share. The FMV of the stock on the alternate valuation date of Aug 1, Year 2, was $31 per share. The stock was distributed to Anna on March 1, Year 3, when the FMV was $35 per share. Anna sold the lima stock on December 15, year 3, for $38 per share. Tax basis & holding