Santinis new contract for 2018 indicates the following compensation and benefits:

Benefit Description	Amount
Salary	$	139,500
Health insurance		18,500
Restricted stock grant		4,400
Bonus		6,900
Hawaii trip		5,900
Group-term life insurance		3,500
Parking ($328 per month)		3,936

Santini is 54 years old at the end of 2018. He is single and has no dependents. Assume that the employer matches $1 for $1 for the first $9,800 that the employee contributes to his 401(k) during the year. The restricted stock grant is 500 shares granted when the market price was $6 per share. Assume that the stock vests on December 31, 2018, and that the market price on that date is $55.00 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 2017. 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 2018. Use Tax rate schedules and Exhibit 12-8.