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Business, 03.03.2022 04:50 katekatdawsonke3863

Santini’s 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 2021. 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 restricted stock grant is 500 shares granted when the market price was $5 per share. Assume that the stock vests on December 31, 2021, and that the market price on that date is $37.50 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 2020. The group-term life policy gives him $150,000 of coverage. Assume that Santini does not itemize deductions for the year.

Required:
Determine Santini's taxable income and income tax liability for 2018.

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