All the following statements concerning the income, estate, and gift tax consequences of a net gift are correct EXCEPT:

A. The donor will have taxable income to the extent the donees payment of gift tax exceeds the donors adjusted basis in the gift property.

B. Because the donee pays the gift tax, the donor does not use up any of his or her unified credit.

C. Gift taxes paid by the donee will reduce the amount of the taxable gift.

D. The net amount of the gift is treated as an adjusted taxable gift in the calculation of the donors estate tax at the time of the donors death.

Can you provide a detailed explanation for your answer? Please only answer if you have a strong background in estate planning.