Pennsylvania State University High School Accounting Question

I’m working on a accounting test / quiz prep and need an explanation to help me study.

Valerie receives a painting as a gift from her aunt. The fair market value (FMV) of the painting is $6,000 on the date of the gift. Valerie’s aunt’s basis in the painting is $13,000. Three years later, Valerie sells the painting for $8,000. What is the amount of gain (or loss) recognized by Valerie when she sells the painting?

$2,000 gain

No gain (or loss) is recognized.

$5,000 loss

$8,000 gain

$7,000 loss