Santini's new contract for 2023 indicates the following compensation and benefits: Benefit Description Amount Salary $ 130,000 Health insurance 9,000 Restricted stock grant 2,500 Bonus 5,000 Hawaii trip 4,000 Group-term life insurance 1,600 Parking ($330 per month) 3,960 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 $7.50 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 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.
Santini's new contract for 2023 indicates the following compensation and benefits:
| Benefit Description | Amount |
|---|---|
| Salary | $ 130,000 |
| Health insurance | 9,000 |
| Restricted stock grant | 2,500 |
| Bonus | 5,000 |
| Hawaii trip | 4,000 |
| Group-term life insurance | 1,600 |
| Parking ($330 per month) | 3,960 |
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 $7.50 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 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.
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