Jack Transfers Property Worth $250,000 to a Revocable Trust on January

Multiple Choice

Jack transfers property worth $250,000 to a revocable trust on January 1. Two-and-a-half years later, when the property is worth $300,000, the trust becomes irrevocable. Which of the following statements is correct?

A) A $300,000 gift occurs when the trust became irrevocable.
B) A $250,000 gift occurs when the original transfer was made.
C) A $250,000 gift occurs when the trust became irrevocable.
D) Jack may elect which amount to report as a gift.