Beverly Works for a Large Publicly Traded Company and Regularly

Multiple Choice

Beverly works for a large publicly traded company and regularly receives incentive stock options as bonuses.In the current year,Beverly exercises options to purchase 1,000 shares at $48 per share when the market value is $72 per share.What is Beverly's AMT adjustment from the exercise of the options?

A) $48,000.
B) $24,000.
C) $72,000.
D) None of these.