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

In May 2009, Jack makes a gift of land (basis of $100,000 and fair market value of $225,000) to Randy (Jack 's father) , upon which Jack pays a gift tax of $50,000.After the gift, Randy makes capital improvements to the property at a cost of $35,000.Randy dies in April 2010; the property then is worth $350,000.The alternate valuation date is not elected.Under Randy's will, the property passes to Dennis (Randy's grandson) .Dennis's income tax basis in the property is:

A) $350,000.
B) $164,206.
C) $135,000.
D) $100,000.
E) None of the above.