1. Lisa, a calendar year taxpayer subject to a 32% marginal Federal income tax rate, claimed

a Form 1040 charitable contribution deduction of $250,000 for a sculpture that the IRS later valued at $160,000. The applicable overvaluation penalty is:

1. $0.

2. $5,760.

3. $10,000 (maximum penalty).

4. $11,520.

5. None of the above.