Jim bought a painting on may 30, 2014. On june 1, 2015, Jim gave charles a painting. On the day of the gift, the painting had an adjusted basis of $20,000 and a fmv of $15,000. If charles sold the painting for $12,000 on may 3, 2016 what is charles recognized gain or loss?

a-$3,000 long term capital loss

B- $3,000 short term capital loss

C No gain or Loss

D none of the above