Matt and Patricia Are Husband and Wife and Live in Oregon

Matt and Patricia are husband and wife and live in Oregon. In 1980 and using her funds, Patricia purchases a residence for $400,000, listing title to the property as "Matt and Patricia, joint tenants with right of survivorship." In 2013, Matt dies first when the residence is worth $2 million. A correct statement as to these transactions is:

A) In 2013, Matt's gross estate includes $1 million and a marital deduction of $1 million is allowed for estate tax
Purposes.
B) In 1980, Patricia made a gift to Matt but no marital deduction is available for gift tax purposes.
C) In 1980, Patricia did not make a gift to Matt.
D) In 2013, Matt's estate includes nothing as to the property.
E) None of the above.