On May 18 of Last Year,Yuji Sold Non-Publicly Traded Stock

On May 18 of last year,Yuji sold non-publicly traded stock with a cost of $12,000 for $30,000.Yuji collected $10,000 initially and is scheduled to receive $5,000 each year for four years starting this year plus an acceptable rate of interest.After receiving the first scheduled $5,000 payment,Yuji was unable to collect any further payments.After incurring legal fees of $500,Yuji recovered a portion of the stock valued at $13,000.Yuji's basis in the recovered stock is

A) $6,500.
B) $7,000.
C) $12,500.
D) $13,000.