Joe Bob receives stock options (ISOs) with an exercise price of $18 when the stock is trading at $18. Joe Bob exercises these options two years after the date of the grant when the stock price is $39 per share. Which of the following statements is correct

a. Upon exercise Joe Bob will have no regular income for tax purposes.

b. Joe Bob will have W-2 income of $21 per share upon exercise.

c. Joe Bob will have $18 of AMT income upon exercise.

d. Joe Bob’s adjusted basis for regular income tax will be $39 at exercise.