Janice performed interior decorating services for Jack and accepted a diamond necklace as payment for her services instead of cash. Janice and Jack had previously agreed on a price of $4,500 for her work. At the time of the exchange, Jack estimated that the necklace was worth $5,000. Jack's adjusted basis in the necklace was $2,000. What amount must Janice include in her income, and what is her basis in the property received?

Income Basis

a) $5,000 $2,000

b) $5,000 $5,000

c) $4,500 $4,500

d) $4,500 $2,000