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 1976.Megan had purchased the stock in 1974 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 1976,what is Jeri's gain basis for the stock?

A) $7,500
B) $8,350
C) $9,017
D) $20,000
E) None of these