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 should treat the 1,000 shares of Elin stock as a