On February 2, 2014, Karin Purchases Real Estate for $375,000

On February 2, 2014, Karin purchases real estate for $375,000. The annual property taxes of $5,000 are payable on December 31. Realizing that she will pay the property taxes for the entire year, Karin remits $374,575 to the seller at closing. Karin's adjusted basis for the real estate is:

A) $374,575.
B) $375,000.
C) $375,425.
D) $379,575.
E) None of the above.