Susan sold 400 shares of Apple stock for $78 per share. Susan had recieved 1000 shares of Apple stock as a gift from her grandfather on June 3, 2008. Her grandfather had purchased the stock for $35 per share on May 7, 2004, and the stock was valued at $60 per share on the date of the gift. Susan's grandfather paid gift taxes of

$10,000 as a result of the gift.

What is Susan's basis in the stock she sold?