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

Benefit Description	Amount
Salary	$	137,500
Health insurance		16,500
Restricted stock grant		4,000
Bonus		6,500
Hawaii trip		5,500
Group-term life insurance		3,100
Parking ($320 per month)		3,840

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 $9,000 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 $45.00 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. (Round your answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

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	Description Amount Taxable Benefits Salary $137,500 Restricted stock grant 4,000 Bonus 6,500 Hawaii trip 5,500 Life Insurance (taxable portion) Parking 3,840 ISO AGI $157,340 Standard Deduction 5,700 Taxable Income Income Tax Liability

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