Spyder,
(1)310-16 12cu 25amps
(2)240.40d allows higher than 20amps on 12cu
(3)AC isn't considered a continous load, it's a motor load, 125% of motor load. 17 amps X125%= 22 amps
(4)voltage drop and ambient temperatures are not factors here
I haven't found a reason why I can't do this. I know this may not be the best way but it complies with the code.