1. Upon the recommendation of a physician, Joshua has a dust elimination system installed in his personal residence. He suffers from severe allergies. In connection with this system, Joshua incurs and pays the following amounts during the current year:
Dust elimination system and cost of installation $7,000
Increase in utility bills due to the system 400
Cost of certified appraisal 500
The system has an estimated useful life of 5 years. The appraisal was to determine the value of Joshua's residence with and without the system. The appraisal states that the system increased the value of Joshua's residence by $3,000. Disregarding percentage limitations, how much of the above expenditures qualify for the medical expense deduction in the current year?
a. $7,900.
b. $7,400.
c. $4,500.
d. $4,400.
e. None of the above.
2. In 2010, Aaron pays $3,000 to become a charter member of Western University's Athletic Council. The membership ensures that Aaron will receive choice seating at all of Western's home football games. Also in 2010, Aaron pays $600 (the regular retail price) for season tickets for himself and his wife. For these items, how much qualifies as a charitable contribution?
a. $0.
b. $600.
c. $2,400.
d. $3,000.
e. None of the above.