On October 1, 2012, Lois Rice learned that she was bequeathed
1,000 shares of Elin Corp. common stock under the
will of her uncle, Pat Prevor. Pat had paid $5,000 for the Elin
stock in 2008. Fair market value of the Elin stock on October 1,
2012, the date of Pat’s death, was $8,000 and had increased to
$11,000 six months later. The executor of Pat’s estate elected the
alternative valuation for estate tax purposes. Lois sold the Elin
stock for $9,000 on December 1, 2012, the date that the executor
distributed the stock to her.
Lois’ basis for gain or loss on sale of the 1,000 shares of Elin
stock is