Cynthia and Luke live in a common law state and own their principal residence as tenants by the entirety $($TBE$).$ They purchased their home $12$ years ago with funds from an insurance settlement received by Cynthia for $$350,000.$ Their home is currently valued at $$800,000.$ If Cynthia were to die today, what amount would be in her gross estate, and what would the basis now be for Luke?

A$.$ $$400,000$ in Cynthia$$s gross estate, and $$575,000$ adjusted basis for Luke

B$.$ $$400,000$ in Cynthia$$s gross estate, and $$800,000$ adjusted basis for Luke

C$.$ $$800,000$ in Cynthia$$s gross estate, and $$800,000$ adjusted basis for Luke

D$.$ $$350,000$ in Cynthia$$s gross estate, and $$575,000$ adjusted basis for Luke