Sorry - I should have said he has done the exemption and it has been approved by IRS.  
The reason I asked about subtracting the FMRV from the cash compensation of $76,700 is because our church was told by a lawyer that it should be done that way but after doing my own research it seems that the FMRV is an exclusion from income not a subtraction (as I was told by a tax consultant). In orders words the preacher doesn't pay taxes on the FMRV, only on his cash compensation