Gold Corporation sells baseball bats and reported net income of $35,000 before charitable contributions. It contributed 100 bats to a local high school. Each bat has a FMV of $40 and a basis of $30. Determine Gold's taxable income and charitable contribution carryforward.

a. Taxable income of $31,000, carryforward of zero.

b. Taxable income of $31,500, carryforward of $500.

c. Taxable income of $32,000, carryforward of zero.

d. Taxable income of $35,000, carryforward of $4,000.