Elizabeth, a widow, has decided to set up trusts for each of her four grandchildren to take advantage of the generation-skipping transfer tax exemption. In 2021, she gives each grandchild $250,000. Elizabeth has not made any previous taxable gifts. What taxable amount will she owe tax on for the 2021 transfers?

A) $400,000.

B) $376,000.

C) $940,000.

D) $0