Sanford Gives Mitchell 100 Shares of Stock That Cost Sanford

Sanford gives Mitchell 100 shares of stock that cost Sanford $5,000 several years ago. On the date of the gift, the stock is valued at $3,000. Mitchell holds the stock until the value increases and sells it for $4,000. What is Mitchell's recognized gain or loss on the sale?

A) No gain or (loss) is recognized
B) $1,000 loss
C) $1,000 gain
D) $2,000 loss
E) $4,000 gain