In addition to other gifts, Megan made a gift of stock to Jeri in 1975.Megan had purchased the stock in 1973 for $7,500.At the time of the gift, the stock was worth $20,000.If Megan paid $850 of gift tax on the transaction in 1975, what is Jeri's gain basis for the stock?
A)$7,500.
B)$8,350.
C)$9,017.
D)$20,000.
E)None of the above.

Question

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The Answer of In addition to other gifts, Megan made a gift of stock to Jeri in 1975.Megan had purchased the stock in 1973 for $7,500.At the time of the gift, the stock was worth $20,000.If Megan paid $850 of gift tax on the transaction in 1975, what is Jeri's gain basis for the stock?
A)$7,500.
B)$8,350.
C)$9,017.
D)$20,000.
E)None of the above.

In Addition to Other Gifts, Megan Made a Gift of Stock