Carlos Anderson died on March 13, Year 9 and bequeathed his entire \($4,000,000\) estate to his daughter, Derna. His estate included investment real estate that had a tax basis to Carlos of \($230,000.\) This property was distributed to Derna seven months after Carlos’s death.
The executor of Carlos’s estate validly elected the alternate valuation date. Fair market values for the real estate were:

Derna’s basis for the real estate is:

a. $ 0

c. $470,000

b. $460,000

d. $500,000

Transcribed Image Text:

At the date of Carlos's death $500,000 Six months after Carlos's death $460,000 Seven months after Carlos's death $470,000