LO.2, 3, 4, 5 Farr, who is single, has no dependents and does not itemize. She has the following items relative to her tax return for 2012:

Bargain element from the exercise of an ISO (no restrictions apply to the stock) $ 45,000 MACRS depreciation on shopping mall building acquired after 1986 and before 1999 (ADS depreciation would have yielded $26,000) 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 for 2012.

b. Calculate the AMT (if any) for 2012.