Aqua, Inc., a calendar year corporation, records the following gross receipts and taxable income for 2010-2013. Aqua's first year of operations was 2010.
Year Gross Receipts Taxable Income
2010..................$6,000,000...............$1,400,000
2011...................7,000,000..................1,312,000
2012..................7,500,000.....................985,000
2013..................7,200,000..................1,002,000
a. When is Aqua first exempt from the AMT as a small corporation?
b. Is Aqua subject to the AMT for 2013? Explain.