Mother purchased 100 shares of High Dive Inc. common stock years ago for $15,000. It now has a fair market value (FMV) of $12,000.

Mother purchased 100 shares of High Dive Inc. common stock years ago for $15,000. It now has a fair market value (FMV) of $12,000. Despite its current value, Mother sells the stock to her daughter for $4,000. Mother paid no gift tax on the bargain sale because the gift element of the transaction (the difference between the stock's current FMV and the purchase price) qualified for the annual gift tax exclusion. The stock declines in value and the daughter sells it for $8,000. How much is daughter's basis for figuring her loss?

 A.$4,000 

B.$8,000

 C.$12,000 

D.$15,000