William, a cash-basis sole proprietor, had the following receipts and disbursements for 2014: (i) Gross receipts $50,000, (ii) Cost of sales $30,000, (iii) Other operating expenses$6,000, (iv) Medical expenses $600. For 2014, what amount should he report as net earnings from self-employment? (Points : 1)

$13,400

$14,000

$19,400

$20,000

None of the other choices

Kate is an accrual basis, calendar-year taxpayer. On November 1, 2014, she leased out a building for $4,500 a month. On that day Kate received 7 months rental income on the building, a total of $31,500 ($4,500 7 months). How much income must Kate include on her 2014 tax return as a result of this transaction? (Points : 1)

$4,500 $9,000 $31,500 $54,000 None of the other choices provided