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 $5,000.At the time of the gift,the stock was worth $7,500.If Megan paid $360 of gift tax on the transaction in 1975,what is Jeri's gain basis for the stock?

A) $5,000.
B) $5,120.
C) $5,360.
D) $7,860.
E) None of the above.