Which Is The Best Acoustic Electric Guitar For $1200?

This depends largely on music being played. Some great guitars for this price range would include:
Boulder Creek Solitaire
Washburn Classical Series
Gretsch 5120
Fender GA-45 SCE
Epiphone DR-500MCE
All these beauties are good guitars, and will leave enough in your budget for a good amp. To get the best bang for your buck, pair them with a Tube-style amp, preferably Marshal.

If you have this type of money to spend then don't look anywhere else, the perfect deal for $1200 is the Ibanez Steve Vai series EP9 Acoustic Electric Guitar. Every guitar player has heard about Steve Vai and what more would it be to buy a Steve Vai Signature guitar for 1200 dollars. The guitar is well made and the construction is very good once you are able to set the action of the guitar according to your playing comfort the guitar will not only sound great but also feel great. Once the guitar is plugged in it sounds very good, smooth warm tone that is what you will get. The guitar also offers different tone options. The guitar also features tree of life Vai signature inlays, solid Engelmann spruce top, Satin Grover tuners and the Fishman Aura Acoustic Imaging Blender system with onboard guitar tuner.

Look for a washburn, they make good guitars. I own one and love it. Also look at a martin or fender gibson also has some good ones. Just look around read lots of reviews till you find one you like. Good luck!