Etta Received Nontaxable Stock Rights on October 3, 2012

Multiple Choice

Etta received nontaxable stock rights on October 3, 2012.She allocated $12,000 of the $30,000 basis for the associated stock to the stock rights.The stock rights are exercised on November 8, 2012.The exercise price for the stock is $42,000.What is Etta's basis for the acquired stock?

A) $12,000.
B) $42,000.
C) $54,000.
D) $72,000.
E) None of the above.