Santini's new contract for 2014 indicates the following compensation and benefits Benefit Description Salary Health insurance Restricted stock grant Bonus Hawaii trip Group-term life insurance Parking (S275 per month) Amount $130,000 9,000 2,500 5,000 4,000 1,600 3,300 Santini is 54 years old at the end of 2014. He is single and has no dependents. Assume that the employer matches $1 for $1 for the first $6,000 that the employee contributes to his 401(k) during the year. The 100 ISOs each allow the purchase of 10 shares of stock at a strike price of $5 (also the market price on the date of grant). The ISOs vest in two years when the stock price is expected to be $15 and Santini expects to sell the shares in three years when the market price is $20. The restricted stock grant is 500 shares granted when the market price was S5 per share. Assume that the stock vests on December 31, 2014, and that the market price on that date is $7.50 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 sales person for 2013. The group-term life policy gives him $150,000 of coverage. Assume that Santini does not itemize deductions for the year. Assume that Santini makes a section 83(b) election Determine Santini's taxable income and income tax liability for 2014. Use Tax rate schedule and Exhibit 12-10. (Round your answer to the nearest whole dollar amount.) Description Amount Taxable Benefits Salary Restricted stock grant Bonus Hawaii trip Life Insurance (taxable portion) Parking ISO AGI Standard Deduction Personal Exemption Taxable Income Income Tax Liability $ 130,000 2,500 5,000 4.000 276 $ 141,776