Matt and Patricia Are Husband and Wife and Live in Oregon.In

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 2012,Matt dies first when the residence is worth $2 million.A correct statement as to these transactions is:

A) In 2012,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 2012,Matt's estate includes nothing as to the property.
E) None of the above.