In May 2012,Stephen Acquired a Used Automobile for $12,000 and Used

question 7

Multiple Choice

In May 2012,Stephen acquired a used automobile for $12,000 and used the automobile 75% for business.No Sec.179 election was made.In 2013,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 2013 depreciation
• B)Stephen's depreciation in 2013 is $2,250.
• C)Stephen must recapture $900 as ordinary income in 2013
• D)Stephen must amend the 2013 tax return and recompute depreciation.

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Definitions:

Spermicide

A chemical agent used in some contraceptive products to kill or immobilize sperm, thereby preventing fertilization.

Natural Pesticides

Substances derived from natural sources (plants, bacteria, fungi, and certain minerals) used to control pests without synthetic chemicals.

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Densely wooded areas found near the equator characterized by high rainfall, biodiversity, and a warm climate year-round.

South America

A continent located in the Western Hemisphere, mostly in the Southern Hemisphere, with a rich diversity of ecosystems, cultures, and histories.