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

Multiple Choice

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.