Question $4(3$ points$)$

Tom inherited $100$ acres of land on the death of his father this year. A Federal estate

tax return was filed and the land was valued at $$300,000($its fair market value at the

date of the death$).$ Tom's father originally acquired the land years ago for $$19,000$

and prior to his death made permanent improvements of $$6,000.$ What is Tom's basis

in the land?

$$25,000$

$$300,000$

$$325,000$

$$19,000$