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.