Harvey died on November 7, Year 1, leaving his entire $2 million estate to his brother, Ken. Harveys executor validly elected the alternate valuation date. Harveys estate included 1,000 shares of Morbid stock for which Harveys basis was $77,500. The stock was distributed to Ken on July 7, Year 2. The FMV of this stock over the 8 months following Harveys death was as follows: November 7, Year 1 = $85,000 May 7, Year 2 = $92,500 July 7, Year 2 = $94,500 Kens basis in this stock is:

A) $94,500

B) $85,000

C) $92,500

D) $77,500