38. During the current year, Diana's uncle Harold gave her his art collection. At the time of the gift, the art collection had a FMV of $175,000 and his aunt's adjusted basis was $135,000. After deducting the annual exclusion, the amount of the gift was $160,000. Her uncle paid a gift tax of $25,000 on the art collection. What is Diana's basis in the art collection for purposes of determining gain? A) $135,000 B) $141,250 C) $160,000 D) $175,000