Paxton receives stock options (ISOs) with an exercise price of $20 when the stock is trading at, i.e., fair market value, $19 per share. Paxton 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 exercise, Paxton will have to recognize taxable income equal to $19 2) Paxton will have W-2 income equal to $1 per share on the date of grant 3) Paxton will have an alternative minimum tax adjustment equal to $30 per share upon exercise 14) Paxton's adjusted basis for regular income tax will be $50 at exercise