Juarez (a calendar year taxpayer) donates a painting to a local art museum (a qualified charity). The painting cost Juarez $2,000 10 years ago and, according to one of Juarez's friends (an amateur artist), now is worth $40,000. On his income tax return, Juarez deducts $40,000 as a Form 1040 charitable contribution. Upon later audit by the IRS, it is determined that the true value of the painting was $30,000. Juarez is subject to a 24% marginal Federal income tax rate, so his penalty for overvaluation is:

a.$0.

b.$10,000 (minimum penalty).

c.$2,000.

d.$5,000.

e.$2,400.