Just prior to a major operation, Cody gives his son, Martin, stock in Robin Corporation (fair market value of $1,581,000 and basis of $2,213,400). At the time of the gift, Cody held some unused capital losses. The surgery is unsuccessful, and after Codys death, Martin sells the stock for $2,434,740.

a. What is the income tax result for Martin?

b. What if the gift had not been made and the stock passed to Martin as a bequest from Cody?