Susan, mother of Holly and Polly, owned 100 acres of undeveloped land when she died on October 1, 2012. Susan had acquired the land in 1978 for $20,000.Susans Will was admitted to probate, and the Will specifically devised the 100 acres of undeveloped land to Susans children Holly and Polly, as tenants in common. No estate tax return was required to be filed but several appraisals were acquired which all concluded that the fair market value as of the date of Susans death was $300,000. Holly and Polly both survived Susan, and the land was distributed to Holly and Polly in 2013 when the property was still worth $300,000. Holly and Polly did not make any improvements to the land, and in 2018, Polly transferred Pollys undivided one-half interest as tenant-in-common to Holly. At the date of the transfer to Holly, the fair market value of Pollys undivided one-half interest as tenant in common was $800,000. After the transfer, how much is Pollys basis in the 100 acres of undeveloped land?a.300,000 b. 550,000 c.$950,000 d. $325,000

My answer is (b) 550,000. Am I on the correct path? I showed below how I got the answer. If not correct can you explain the error?

FMV300,000			FMV-800,000
	HOLLY	POLLY
	150,000	150,000
FROM POLLY	400,000
BASIS	550,000