On January 5,2018 , Gerry was issued 10,000 nonqualified stock options (NQSOs) of L\&O Corp., his employer. At the date of grant, the fair market value (FMV) of the stock was $35 and the exercise price was $35. On January 5, 2019, Gerry exercised 2,000 options when the FMV of the stock was $48. Which of the following statements is CORRECT? Gerry has W-2 income of $96,000 and AMT of $70,000 Gerry has W-2 income of $70,000 and AMT of $26,000 Gerry has W-2 income of $26,000 and adjusted basis in the stock of $96,000 Gerry has W-2 income of $0 and adjusted basis in the stock of $70,000