Jack Did Not Depreciate One of His Machines That Cost

question 26

Multiple Choice

Jack did not depreciate one of his machines that cost $40,000 because he had net operating losses for the last two years.Which of the following statements is true?

• A)Jack's basis in the asset is $40,000 this year.
• B)Jack can deduct three year's depreciation in the current year.
• C)Jack must file amended returns to claim the depreciation for prior years.
• D)If Jack sells the machine for $20,000 this year, he has a $20,000 loss.

---

Definitions:

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone. It is often viewed as the pinnacle of psychological development.

Hawthorne Studies

A series of studies conducted in the early 20th century that examined how different work conditions affected employee productivity and concluded that workers were more motivated by attention and social factors than physical conditions.

Classical Management

A theory of management that emphasizes structured organization, hierarchy, and clear, defined roles and duties to enhance efficiency.

Productivity

The efficiency at which goods and services are produced, often measured by the output per unit of input.