Question 70 of 75.

Linda owns 175 shares of stock in an S corporation which she purchased for $50 per share. Linda gave 25 shares to her daughter, Janet. Linda also sold five shares to her friend, Betty, for $62 per share. What are Linda, Janet and Betty's respective basis after those transactions?

A. Linda: $7,250; Janet: $1,250; Betty: $250.

B. Linda: $7,250; Janet: $1,250; Betty: $310.

C. Linda: $8,750; Janet: $1,250; Betty: $310.

D. Linda: $8,750; Janet: $1,250; Betty: $250.