Common stock of ABC Corporation, a publicly traded corporation, and cash was contributed by Taxpayer to a qualified public charity on June 10, 2018. Taxpayers adjusted basis in the stock was $1,000 and the fair market value of the stock on June 10 was $1,500. $2,000 of cash was also contributed to qualified public charity on June 10, 2018. The stock was held long-term and was held for investment. What is the correct income tax treatment as a result of the donations?

a. Taxpayers initial income tax charitable deduction amount would be $1,000 for the stock with no gain recognized with respect to the stock and $2,000 for the cash, both subject to the same adjusted gross income limitation, assuming that Taxpayer itemizes deductions.

b. The amount of the charitable deduction may be limited based upon the overall phase-out of itemized deductions.

c. Taxpayers initial income tax charitable deduction amount would be $1,500 for the stock with $500 gain recognized and $2,000 for the cash, both subject to the same adjusted gross income limitation, assuming that Taxpayer itemizes deductions.

d. b and c are both correct.

e. None of the above statements is a correct statement.