Arjun died on April 3, Year 4 with a gross estate of \($11,500,000.\) In his will, he left his personal residence to his grandson. Arjun had originally purchased the home for \($172,000.\) Fair market values for the home were as follows:

The executor of the estate did not elect the alternate valuation date. The home was distributed to the grandson on May 28.

What is the grandson’s basis in the home? What is the grandson’s holding period?

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April 3, Year 4 May 28, Year 4 $400,000 $410,000 October 3, Year 4 $430,000 April 3, Year 5 $450,000