Jillian receives stock options (ISOs) with an exercise price of $20 when the stock is trading at, i.e., fair market value, $25 per share. Jillian exercises these options two years after the date of the grant when the stock price is $50 per share. Which of the following statements is correct? 1) Upon the date of grant, Jillian will have to recognize taxable income, i.e., W-2 income, equal to $5 per share 2) Jillian will have W-2 income equal to $20 per share on the date of grant 3) Jillian will have an alternative minimum tax adjustment equal to $20 per share upon exercise 4) Jillian's adjusted basis for regular income tax will be $50 at exercise