Determine Santini's taxable income and income tax liability for 2023. Use Tax rate schedules and Exhibit 12-8. Note: Round your answers to the nearest whole dollar amount.
Determine Santini's taxable income and income tax liability for 2023. Use Tax rate schedules and Exhibit 12-8. Note: Round your answers to the nearest whole dollar amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vishnu
![Santini's new contract for 2023 indicates the following compensation and benefits:
Salary
Benefit Description
Health insurance
Restricted stock grant
Bonus
Hawaii trip
Group-term life insurance
Parking ($380 per month)
Amount
$ 142,500
21,500
2,500
7,500
6,500
4,100
4,560
Santini is 54 years old at the end of 2023. 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, 2023, and that the market price on that date
is $70.00 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
2022. 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 2023. Use Tax rate schedules and
Exhibit 12-8.
Note: Round your answers to the nearest whole dollar amount.
> Answer is complete but not entirely correct.
Description
Taxable Income
Income Tax Liability
Amount
$
146,002
$
26,612](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa733075e-2fb8-4802-a525-e25ab461cf82%2F934ce832-f589-4fea-93b5-eb4dcc06c22b%2Fik3a2d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Santini's new contract for 2023 indicates the following compensation and benefits:
Salary
Benefit Description
Health insurance
Restricted stock grant
Bonus
Hawaii trip
Group-term life insurance
Parking ($380 per month)
Amount
$ 142,500
21,500
2,500
7,500
6,500
4,100
4,560
Santini is 54 years old at the end of 2023. 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, 2023, and that the market price on that date
is $70.00 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
2022. 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 2023. Use Tax rate schedules and
Exhibit 12-8.
Note: Round your answers to the nearest whole dollar amount.
> Answer is complete but not entirely correct.
Description
Taxable Income
Income Tax Liability
Amount
$
146,002
$
26,612
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