Q26

Santinis new contract for 2019 indicates the following compensation and benefits:

Benefit Description	Amount
Salary	$	141,000
Health insurance		20,000
Restricted stock grant		2,500
Bonus		7,200
Hawaii trip		6,200
Group-term life insurance		3,800
Parking ($339 per month)		4,068

Santini is 54 years old at the end of 2019. He is single and has no dependents. The restricted stock grant is 500 shares granted when the market price was $5 per share. Assume that the stock vests on December 31, 2019, and that the market price on that date is $62.50 per share. Also assume that Santini is willing to make any elections to reduce equity-based compensation taxes. The Hawaii trip was given to him as the outstanding salesperson for 2018. The group-term life policy gives him $150,000 of coverage. Assume that Santini does not itemize deductions for the year.

Determine Santini's taxable income and income tax liability for 2019. Use Tax rate schedules and Exhibit 12-8. (Round your answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

Description	Amount
Taxable Benefits	N/A
Salary	141,000
Restricted stock grant	2.500
Bonus	7.200
Hawaii trip	???
Life insurance (taxable portion)	???
Parking	???
AGI	???
Standard Deduction	???
Taxable Income	???
Income Tax Liability	???