Sarah Purchased a Diamond Bracelet for $3,000 While Vacationing in Hong

Sarah purchased a diamond bracelet for $3,000 while vacationing in Hong Kong during 2008. Sarah gives the bracelet to her daughter Amy when she graduates from college in 2014. The bracelet is appraised at $8,000 on that date. In October 2014, Amy sells the bracelet for $9,000. What is the amount of gain Amy should recognize on the sale?

A) No gain or loss) is recognized
B) $1,000
C) $4,000
D) $5,000
E) $6,000