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

In May 2009, Dwayne makes a gift of land (basis of $250,000 and fair market value of $400,000) to Aaron (Dwayne 's father) , upon which Dwayne pays a gift tax of $100,000.After the gift, Aaron makes capital improvements to the property at a cost of $140,000.Aaron dies in June 2010; the property then is worth $500,000.The alternate valuation date is not elected.Under Aaron 's will, the property passes to Dwayne.Dwayne's income tax basis is:

A) $500,000.
B) $428,560.
C) $390,000.
D) $250,000.
E) None of the above.