Last Year, E Received 50 Acres of Undeveloped Land as a Gift

Multiple Choice

Last year, E received 50 acres of undeveloped land as a gift from her grandmother.The land had cost $20,000 15 years ago, but was appraised at $50,000 on the date of the gift.E's grandmother paid gift taxes of $12,000 on this $36,000 taxable gift ($50,000 fair value - $14,000 annual gift tax exclusion) .If E sells the land this year for $55,000 (net of selling expenses) , what is her gain on the sale?

A) $5,000
B) $19,000
C) $23,000
D) $25,000