Tyrone received 100 incentive stock options in Year 1 from his employer that have an exercise price of $20. In Year 2 he exercises the options when the stock is selling for $26. In Year 4 he sells the stock for $30 per share. Which of the following statements is true?

Group of answer choices

For AMT purposes Tyrone has income of $600 in Year 2.

For AMT purposes Tyrone has income of $1.000 in Year 4.

For AMT purposes Tyrone has income of $2,000 in Year 1.

Tyrone has no income for AMT purposes with regard to these options.