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_7. Scott received incentive stock options (ISOs) from his employer. The option allows Scott to purchase 100 shares of company stock at $50 per share. Scott exercises the option five years later when the market value of the stock is $125 per share. Scott holds the stock for three more years and then sells it for $175 per share. In the year of exercise, Scott has reportable amounts for regular tax purposes and for AMT purposes, respectively, of: a. $0 and $0 d. $12,500 and $5,000 b. $0 and $7,500 e. $5,000 and $7,500 c. $7,500 and $5,000 __1. Philip earned a salary of $140,000 in the current year. He received $35,000 in dividends and interest during the year. In addition, he incurred a loss of $25,000 from an investment in a passive activity. His at- risk amount in the activity at the beginning of the current year was $15,000. What is his AGI for the current year? a. $135,000 b. $150,000 c. $160,000 d. $175,000 2. Amy actively participates in the rental of two houses that she owns. During the current year, one house had a net loss of $35,000 while the other had a net profit of $5,000. Amy's only other income is $122,000 salary from her employer. What is Amy's AGI for the current year? a. $127,000 b. $122,000 c. $108,000 d. $106,000 e. $92,00

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