In April 2011, Tim Makes a Gift of Real Estate

In April 2011, Tim makes a gift of real estate (basis of $900,000; fair market value of $800,000) to his aunt. After the gift, the aunt makes $50,000 worth of capital improvements to the property. The aunt dies in March 2012, when the property is worth $840,000. Under the aunt's will, the realty passes to Tim. Tim's income tax basis in the property is:

A) $840,000.
B) $890,000.
C) $900,000.
D) $950,000.
E) None of the above.