In May 2009, Simon Makes a Gift of Land (Basis

In May 2009, Simon makes a gift of land (basis of $100,000 and fair market value of $300,000) to Mike (Simon's father) , upon which Simon pays a gift tax of $20,000.After the gift, Mike makes capital improvements to the property at a cost of $35,000.Mike dies in April 2010; the property then is worth $400,000.The alternate valuation date is not elected.Under Mike 's will, the property passes to Simon.Simon's income tax basis is:

A) $100,000.
B) $148,937.
C) $155,000.
D) $300,000.
E) None of the above.