Marvin,the vice president of Lavender,Inc. ,exercises stock options for 100 shares of stock in March 2014.The stock options are incentive stock options (ISOs).Their exercise price is $20 and the fair market value on the date of exercise is $28.The options were granted in March 2010 and all restrictions on the free transferability had lapsed by the exercise date.
A)If Marvin sells the stock in December 2015 for $3,000,his AMT adjustment in 2015 is a positive adjustment of $800.
B)If Marvin sells the stock in December 2016 for $3,000,his AMT adjustment in 2016 is $0.
C)If Marvin sells the stock in December 2015 for $3,000,his AMT adjustment in 2015 is a negative adjustment of $800.
D)If Marvin sells the stock in December 2016 for $3,000,his AMT adjustment in 2016 is a negative adjustment of $1,000.
E)None of the above.

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The Answer of Marvin,the vice president of Lavender,Inc. ,exercises stock options for 100 shares of stock in March 2014.The stock options are incentive stock options (ISOs).Their exercise price is $20 and the fair market value on the date of exercise is $28.The options were granted in March 2010 and all restrictions on the free transferability had lapsed by the exercise date.
A)If Marvin sells the stock in December 2015 for $3,000,his AMT adjustment in 2015 is a positive adjustment of $800.
B)If Marvin sells the stock in December 2016 for $3,000,his AMT adjustment in 2016 is $0.
C)If Marvin sells the stock in December 2015 for $3,000,his AMT adjustment in 2015 is a negative adjustment of $800.
D)If Marvin sells the stock in December 2016 for $3,000,his AMT adjustment in 2016 is a negative adjustment of $1,000.
E)None of the above.

Marvin,the Vice President of Lavender,Inc