Farr, who is single, has no dependents and does not itemize. She shows the following items relative to her current-year tax return.
Bargain element from the exercise of an ISO (no restrictions apply to the stock) ............ $ 45,000
MACRS depreciation on shopping mall building acquired in 2010 ............................... 49,000
Percentage depletion in excess of property's adjusted basis ....................................... 50,000
Taxable income for regular income tax purposes ................................................... 121,000
a. Determine Farr's AMT adjustments and preferences.
b. Calculate Farr's AMT (if any).