The Income Statement of the ABC Corporation in Puerto Rico, prepared on a tax basis, presents the following results:

ABC Corporation Income Statement (Tax Base)

For the year ended December 31, 20X1

Income $ 1,500,000

Cost of sale (600,000)

Gross margin 900,000

Salaries (100,000)

Donations to non-profit entities (40,000)

Other operational expenses (200,000)

Net income $ 560,000

Determine the deduction for donations that the ABC Corporation may claim in tax year 20X1.

a. $ 56,000

b. $ 10,000

c. $ 40,000

d. $ 4,000