Roger and Judy are brother and sister. Together they bought a vacation cabin on Whidbey Island, Washington, in 1990 for $300,000, and took title as Tenants in Common. Neither of them is currently married, but each of them has one child. Roger has a daughter (Sheri) from his former marriage to Sally. Judy has a son (Steven) from her previous long-term relationship with Bill, who is now deceased. Neither of them has a written Will. In April of 2020, Roger dies in the hospital after being infected with the COVID-19 virus. Acting on advice from her accountant, Judy has the cabin appraised, and is surprised to see that the cabin is now worth $700,000. Who now has legal title to the cabin?

a. Judy now owns 100% b. Judy owns 50%; Sheri and Sally own 25% each. c. Judy, Sheri and Sally each own 33 1/3 %

d. Judy owns 50%; Sheri owns 50%.

If we ASSUME that Judy just owns 50 % of the cabin, what is the adjusted basis of her ownership, after Roger dies?

a. $150,000

b. $300,000

c. $350,000 d. $500,000 e. $700,000