Evelyn Everest gave property to her mother Sharon when the adjusted basis of

the property was $12,000 and the fair market value was $80,000. Sharon died eight

months later when the property was valued at $85,000 and she left the property to

Evelyn.

a. What is Evelyn's basis?

$85,000 - The fair market value of the property on the date of death of the

decedent is the basis for the survivor.

b.If Sharon had died more than a year after receiving the gift when the fair

market value was $85,000, what would the basis have been to Evelyn?

The basis would still be $85,000.