McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver

Exercise 16

Santini's new contract for 2011 indicates the following compensation and benefits:
Santini is 54 years old at the end of 2011.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, 2011, 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 sales person for2011.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 2011.