$28,571 is Emma's adjusted basis in the necklace.
<h3><u>
Explanation:</u></h3>
Emma's basis will be summation of her grandmother's basis in the property and the share of the gift tax attributable to the appreciation corresponding to the gifted date.
$20,000 + [$10,000 × ($50,000-20,000) / $35,000]
$20,000 + [($10,000 × $30,000) / $35,000]
$20,000 + [($10,000 × $30,000) / $35,000]
$20,000 + [$3000,000,000 / $35,000]
$20,000+$8571
$28,571.