Juan inherited 75 shares of STU stock from his father on April 16 2018 and sold the stock on July 5, 2018. (There is no alternate valuation date.) The stock basis reported on Form 8949 is the ____________.

1.) Average of the basis on April 16, 2018 and on July 5, 2018.

2.) Fair market value of the stock on the day of his fathers death.

3.) Price paid by his father when the stock was acquired.

4.) Stock price six months before his father died.