Sarah received a gift of 1,000 shares of Miller Corporation stock from her Uncle Jim on
April 10, 2018. On the date of the gift, the fair market value of the stock was $100,000.
Uncle Jim had purchased the stock in 2001 for $70,000. The gift tax paid by Uncle Jim
in connection with this gift was $12,000. This is the only gift made by Uncle Jim to
Sarah during 2018.
a) What is Sarah's basis in the stock?