om purchased 1,000 shares of stock in his corporation for $20 a share. The FMV was $25 a share and Tom reported the $5,000 difference between FMV and amount paid in gross income. What is Tom' basis in the 1,000 shares?

Question 5 options:

1)

$0

2)

$5,000

3)

$20,000

4)

$25,000

5)	Not enough information is provided to answer this question