Your client, July Taylor, is very close to being in an alternative minimum tax situation. She is contemplating the purchase of a private-activity municipal bond. From an income tax standpoint only, which one of the following private activity municipal bonds should she choose, and why?

A bond issued in 2010the interest income is tax-exempt for regular income tax purposes, and the interest is subject to the AMT.

A bond issued in 2010the interest income is tax-exempt for regular income tax purposes, but the interest is not subject to the AMT.

A bond issued in 2011the interest income is tax-exempt for regular income tax purposes, but the interest is not subject to the AMT.

A bond issued in 2011the interest income is taxable for regular income tax purposes, but the interest is not subject to the AMT.