In 2001, Robert Mackenzie bought a boat for $45,000. In 2008, Robert deeded the boat to his son Peter, but Robert retained the right to use the boat. When the gift was made, the property was worth $75,000. Robert filed a gift tax return at the time of the gift and used some of his unified credit. Peter sold the boat soon after Roberts death for $100,000. The boat was worth $100,000 at the date of death. What gain must Peter report on the sale of the boat?

(Topic 66-2)

(A) $0 (B) $55,000

(C) $30,000 (D) $100,000