Kira Wahlgren acquired 100 shares of stock by gift from her father. Her father paid $1,000 in gift tax on the gift. At the time of the gift, the shares had a fair market value of $60 per share. Her father's adjusted basis in the shares was $90 per share. In 2011 Kira sold the stock for $70 per share. What are the tax consequences of the sale?
A) Kira does not have to recognize any gain.
B) Kira has to recognize a $1,000 capital gain.
C) Kira has to recognize a $2,000 capital loss.
D) Kira has to recognize a $3,000 capital loss.