Determine if the situation creates an AMT adjustment or preference when starting with regular taxable income. Place an "A" in the column for Adjustment or a "P" in the column for Preference. Situation AMT Adjustment (A) or Preference (P) a. Taxpayer received interest on a qualified private activity bond used for public works projects. [ Select ] b. Compensation created from an incentive stock option excluded from regular taxable income. [ Select ] c. Taxpayer recognized a gain from the sale of qualified small business stock. [ Select ] d. Taxpayer uses the percentage depletion method to recover the cost of timber. The percentage depletion exceeded the cost basis at the beginning of the year. [ Select ]