When the Annual Exclusion Was $14,000, Arlene Makes a Gift

When the annual exclusion was $14,000, Arlene makes a gift of stock (basis of $814,000; fair market value of $414,000) to her mother, Elizabeth. As a result of the transfer, Arlene paid a gift tax of $60,000. Elizabeth's income tax basis in the stock is:

A) $414,000 basis for gain and loss.
B) $444,000 basis for gain and loss.
C) $814,000 basis for gain and loss.
D) $814,000 basis for gain and $414,000 basis for loss.
E) None of the above.