In May 2017, Stephen Acquired a Used Automobile for $12,000

question 13

Multiple Choice

In May 2017, Stephen acquired a used automobile for $12,000 that he used 75% for business. No Sec. 179 election was made. In 2017, 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 2017 depreciation
• B) Stephen's depreciation in 2017 is $2,250.
• C) Stephen must recapture $900 as ordinary income in 2017
• D) Stephen must amend the 2017 tax return and recompute depreciation.

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Definitions:

Centralization

The process or practice of concentrating authority and decision-making in a central location or group within an organization.

Shared Decision-making

A collaborative approach where all members contribute to the decision process.

Decentralized

Pertains to the distribution of functions, powers, people, or things away from a central location or authority, often to achieve a more distributed and participative decision-making process.

M-Form

Multidivisional Form; an organizational structure that separates a company into semi-autonomous units or divisions based on product, service, or market.