Aqua, Inc., a calendar year corporation, has the following gross receipts and taxable income for its first four tax years:
Year ____________ Gross Receipts ___________ Taxable Income
2014 .................... $6,000,000 .................... $1,400,000
2015 ..................... 7,000,000 ...................... 1,312,000
2016 .................... 7,500,000 .......................... 985,000
2017 .................... 7,200,000 ...................... 1,002,000
a. When is Aqua first exempt from the AMT as a small corporation?
b. Is Aqua subject to the AMT for 2017? Explain.