Tad is a vice-president of Ruby Corporation.In 2010,he acquired 1,000 shares of Ruby Corporation stock under the corporation's incentive stock option (ISO)plan for an option price of $43 per share.At the date of exercise in 2010,the fair market value of the stock was $65 per share.The stock became freely transferable in 2011.Tad sold the 1,000 shares for $69 per share in 2012.Which of the following statements is incorrect?
A)Acquisition of the stock in 2010 had no effect on Tad's taxable income,but increased AMTI by $22,000 in 2010.
B)Tad's regular income tax basis for the stock is $43,000 and his AMT basis is $65,000 in 2011.
C)Tad must report a positive AMT adjustment of $22,000 in 2011.
D)Tad will have a negative AMT adjustment of $22,000 in 2012.
E)All of the above are correct.

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The Answer of Tad is a vice-president of Ruby Corporation.In 2010,he acquired 1,000 shares of Ruby Corporation stock under the corporation's incentive stock option (ISO)plan for an option price of $43 per share.At the date of exercise in 2010,the fair market value of the stock was $65 per share.The stock became freely transferable in 2011.Tad sold the 1,000 shares for $69 per share in 2012.Which of the following statements is incorrect?
A)Acquisition of the stock in 2010 had no effect on Tad's taxable income,but increased AMTI by $22,000 in 2010.
B)Tad's regular income tax basis for the stock is $43,000 and his AMT basis is $65,000 in 2011.
C)Tad must report a positive AMT adjustment of $22,000 in 2011.
D)Tad will have a negative AMT adjustment of $22,000 in 2012.
E)All of the above are correct.

Tad Is a Vice-President of Ruby Corporation