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Wallace, a calendar year taxpayer subject to a 35% marginal tax rate, claimed a charitable contribution deduction in 2019 of $25,000 for a painting that

Wallace, a calendar year taxpayer subject to a 35% marginal tax rate, claimed a charitable contribution deduction in 2019 of $25,000 for a painting that the IRS later valued at $15,000. The applicable overvaluation penalty is:

a. $0.

b. $100 (minimum penalty).

c. $700.

d. $3,500.

e. None of the above.

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