Melba gives her niece a drill press to use in her business with a fair market value of $36,000 and a basis in Melba's hands of $41,000.No gift tax was paid.What is the niece's basis for depreciation (cost recovery)?
A)$0.
B)$5,000.
C)$36,000.
D)$41,000.
E)None of the above.

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The Answer of Melba gives her niece a drill press to use in her business with a fair market value of $36,000 and a basis in Melba's hands of $41,000.No gift tax was paid.What is the niece's basis for depreciation (cost recovery)?
A)$0.
B)$5,000.
C)$36,000.
D)$41,000.
E)None of the above.

Melba Gives Her Niece a Drill Press to Use in Her