3. John Beck received a gift of 500 shares of Boeing stock from his dad (Bill Beck) on June 11, 2019. The stock had a fair market value of $72,000 on the date of the gift. Bill had purchased the shares on December 1, 2007 for $37,500. Bill had never made any gift larger than $10,000 in his lifetime prior to this gift.

1. What is Johns basis in the Boeing stock? When does Johns holding period begin? EXPLAIN.

b. Instead of John receiving the stock as a gift, assume that John inherited the stock in June 2019 due to his fathers death, which occurred on January 13, 2019. Further, assume that the fair market value of the stock at dads date of death was $72,000, and it was worth $96,000 when title passed to John in June. What is Johns basis in the Boeing stock? When does Johns holding period begin? EXPLAIN.