Question 14 A business machine valued at $800 was contributed to a charitable organization during the year. The machine cost $1,000 but was depreciated down to $600 before the donation was made. Indicate the correct income tax treatment with respect to the donation. Question 14 options:

1) Contribution of $600 (no income recognized)

2) Contribution of $1,000 (income of $200 recognized)

3) Contribution of $800 (income of $200 recognized)

4) Contribution of $800 (no income recognized)

5) None of these

Question 15 An individual has an insurance policy that will pay $1,000 a week for 100 weeks in the event of hospitalization no matter what the hospital expenses are. The premium on this policy qualifies as a deductible medical expense subject to the applicable limitations. Question 15 options: 1) True 2) False