Stella gifted stock to her dying husband, Bradford, worth $500,000. Her basis in this stock was $200,000. Bradfords will bequeathed all of his property to Stella. Assume Bradford died one and a half years after receiving the stock. What was the consequence of this reverse gift?

1. The stock received a step-up in basis at Bradfords death.
2. The stock did not receive a step-up in basis because it must be bequeathed to someone other than the decedents spouse.
3. Stella inherited Bradfords adjusted basis in the stock.
4. Stella had to pay a gift tax when the stock was transferred to Bradford.