Cliff Is Married and Files a Joint Return

Multiple Choice

Cliff is married and files a joint return. His return shows AGI of $1,268,000 and a net tax liability of $392,259 on taxable income of $1,224,000. He has $30,000 of preference items and $21,000 of net positive adjustments (including adjustments for itemized deductions) . The $109,400 exemption begins to phase out at $1 million. What is his AMTI exemption amount?

A) $109,400
B) $68,750
C) $40,650
D) $28,825