Question
Santinis new contract for 2019 indicates the following compensation and benefits: Benefit Description Amount Salary $ 138,500 Health insurance 17,500 Restricted stock grant 2,500 Bonus
Santinis new contract for 2019 indicates the following compensation and benefits:
Benefit Description | Amount | |
Salary | $ | 138,500 |
Health insurance | 17,500 | |
Restricted stock grant | 2,500 | |
Bonus | 6,700 | |
Hawaii trip | 5,700 | |
Group-term life insurance | 3,300 | |
Parking ($329 per month) | 3,948 | |
|
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 $50.00 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 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.)
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