Valerie Receives a Painting as a Gift from Her Aunt

Valerie receives a painting as a gift from her aunt. The painting is valued at $6,000 on the date of the gift. Valerie's aunt's basis in the painting is $13,000. Three years later Valerie sold the painting for $8,000. What is the amount of gain or (loss) recognized by Valerie on the sale?

A) No gain or (loss) is recognized
B) $5,000 loss
C) $2,000 gain
D) $7,000 loss
E) $2,000 loss