Amy makes a transfer of a painting worth $100,000 to her favorite charity. She paid $40,000 for the painting 10 years ago. Which of the following statements is most correct about that transfer?

The first $15,000 of that gift is not taxed because it qualifies for the annual exclusion and the remaining $85,000 is not taxed because it is less than the equivalent exemption.

The first $15,000 of that gift is not taxed because it qualifies for the annual exclusion and the remaining $85,000 is not taxed because it is less than the unified credit.

The first $15,000 of that gift is not taxed because it qualifies for the annual exclusion and the remaining $85,000 is not taxed because it qualifies for a deduction as a charitable contribution.

The full amount of the gift is not taxed because it is a charitable contribution.

Amy gets to take a charitable contribution deduction only for the portion of the painting's value which exceeds her $40,000 basis in the property.