Max (A Calendar Year Taxpayer)donates a Painting to a Local

Max (a calendar year taxpayer) donates a painting to a local art museum (a qualified charity) .The painting cost Max $12,000 ten years ago and,according to one of Max's friends (an amateur artist) ,is worth $50,000.On his income tax return,Max deducts $50,000 as a charitable contribution.Upon later audit by the IRS,it is determined that the true value of the painting was $20,000.Assuming that Max is subject to a 35% marginal income tax rate,his penalty for overvaluation is:

A) $0.
B) $2,100.
C) $4,200.
D) $12,000.
E) None of the above.