Uncle Richard died in 2016, he left his estate to his ungrateful cousin, Henry. Richard's cost basis in his property was $2 million but, due to turbulent political and economic times, it was only worth $1 million at his death. Richard had reinvested approximately $250,000 of dividends during his holding period, and his estate paid $500,000 in transfer taxes at his death. What is Henry's basis in the property?

$1,000,000.

$2,000,000.

$2,250,000.

$2,750,000.