Melba Gives Her Niece a Drill Press to Use in Her

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.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.