Tony Died on April 5, 2018

Multiple Choice

Tony died on April 5, 2018. As part of his will, he leaves land that he paid $6,000 for in 2004 to his son Philip. On April 5, 2018, the land is worth $11,000. However, due to local real estate conditions, the land continues to decline in value. On July 28 it is worth only $10,000; it declines further to $9,000 on October 5 and plunges to $7,000 on December 18. In the absence of any special elections,
I.Philip's basis in the land is $6,000.
II.If the executor distributes the land to Philip on July 28, Philip's basis in the land will be $10,000.
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A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.