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Marvin, the vice president of Lavender, Inc., exercises a stock option to purchase 100 shares of stock in March 2020. The stock options are incentive
Marvin, the vice president of Lavender, Inc., exercises a stock option to purchase 100 shares of stock in March 2020. The stock options are incentive stock options (ISOs). Their exercise price is $20 and the fair market value on the date of exercise is $28. The options were granted in March 2016 and all restrictions on the free transferability had lapsed by the exercise date. O a. If Marvin sells the stock in December 2020 for $3,000, his AMT adjustment in 2020 is a positive adjustment of $800. b. If Marvin sells the stock in December 2020 for $3,000, his AMT adjustment in 2020 is $0. c. If Marvin sells the stock in December 2020 for $3,000, his AMT adjustment in 2020 is a negative adjustment of $800. O d. If Marvin sells the stock in December 2021 for $3,000, his AMT adjustment in 2021 is a negative adjustment of $1,000
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