What is great-granddaughter basis in the inherited stock


Problem: Great-grandfather passes away and leaves--via his will--10 shares of Acme, Inc. to his great-granddaughter. Great-grandfather originally paid $25,000 for the stock. The FMV of the stock at Great-grandfather's date of death was $30,000. Six months after great-grandfather's date of death, the stock was worth $32,000. The Great-grandfather's estate was not subject to estate tax and no estate tax return or elections were made. What is great-granddaughter's basis in the inherited stock?

 

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