Dan is the sole owner of his closely held business and he is considering retiring within the next few years. Dan's basis in the property is $500,000 and the current FMV of the business is $1,500,000. Dan would like to see his business continue within his family and be operated by his only child, Amy. If Dan eventually gifts his entire business interest to her, which one of the following statements is correct?

A)Amy will have capital gain in the property of $500,000.
 
B)Amy will have a carryover basis in the property of $500,000.
 
C)Amy will have a stepped-up basis in the property of $1,500,000.
 
D)Amy will have an adjusted basis in the property of $1,000,000.