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.

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Definitions:

Metal Tools

Implements made primarily or entirely of metal, used for a wide range of purposes, including construction, artwork, and daily activities, marking a significant technological advancement in human history.

Paleolithic Paintings

Prehistoric cave paintings created during the Paleolithic era, depicting animals, human figures, and abstract signs.

Sea Creatures

A broad term for animals that live in the water, particularly in oceanic and sea environments, including fish, cephalopods, and marine mammals.

Çatal Höyük

A Neolithic and Chalcolithic archaeological site in southern Anatolia, Turkey, known for its well-preserved buildings and wall paintings that provide insight into early human urban life.