8. Annabelle's great aunt, Sophie, gave her a diamond necklace which Sophie's husband had given her at the birth of their first child. With the birth of each subsequent child, a new diamond and setting was added to the necklace giving the necklace a total of 5 diamonds. The original cost of the necklace with one diamond when purchased by Sophie's husband was $250. Each diamond and setting that was added to the necklace cost an additional $400. Shortly after receiving the necklace, Annabelle purchased a ruby for $1,200 which she had her jeweler add to the necklace at a cost of $350. The jeweler also charged Annabelle an additional $250 to clean the necklace and check that there were no loose gems. Annabelle's jeweler placed the current appraised value of the necklace at $25,000. What is the adjusted basis of the necklace? a) $ 3,050 b) $ 3,400 c) $ 3,650 d) $25,000