In May 2014,Stephen Acquired a Used Automobile for $12,000 and Used

question 16

Multiple Choice

In May 2014,Stephen acquired a used automobile for $12,000 and used the automobile 75% for business.No Sec.179 election was made.In 2015,Stephen's business use of the automobile decreases to 45%.As a result of this change in business use:

• A)The change does not affect the way Stephen computes his 2015 depreciation
• B)Stephen's depreciation in 2015 is $2,250.
• C)Stephen must recapture $900 as ordinary income in 2015
• D)Stephen must amend the 2015 tax return and recompute depreciation.

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Definitions:

Keynesians

Keynesians are economists or followers of the economic theories of John Maynard Keynes, who advocate for active government intervention to manage economic cycles.

Crowding-Out

An economic theory that suggests increased government spending reduces or "crowds out" private sector spending and investment.

Fiscal Policies

Government policies related to taxation and spending that are used to influence the economy, manage inflation, and stimulate or slow down economic growth.

Bond Sales

The process of issuing debt securities by entities such as corporations or governments to investors to raise capital.