Benito died on May 23, 2014, bequeathing his entire $3,000,000 estate to his brother, Alfonso. The executor of Benito's estate validly elected to use the alternative valuation date. Benito's estate included 4,000 shares of listed stock, for which Benito's basis was $500,000. The stock was distributed to Alfonso eight months after Benito's death. The fair market values of this stock on various dates follow:

May 23, 2014 $600,000

November 23, 2014 550,000

January 23, 2015 530,000

Alfonso's basis in the stock is:

1) $500,000.

2) $530,000.

3) $550,000.

4) $600,000.

5) None of the above.