Estate Finance Family Tax Plan Questions

1. Larry dies on January 2, 2002 and bequeaths 1 share of David Inc. stock to Jeff that has a basis of $500,000. On January 2, 2002, 1 of share David Inc. stock has a fair market value of $100,000. On January 2, 2004, Jeff sells the share to Leon for $1 million. How much income does Jeff recognize on the sale? Analyze what Jeff's basis is in the stock and why.