In April of 2015,Brandon Acquired Five-Year Listed Property (Not an Automobile)for

question 1

Multiple Choice

In April of 2015,Brandon acquired five-year listed property (not an automobile) for $30,000 and used it 70% for business.No election was made regarding Sec.179 and bonus depreciation was not available.In 2016,his business use of the property dropped to 40%.Which of the following statements is true?

• A)The change does not affect Brandon's previous depreciation.
• B)Brandon must recapture $2,100 as ordinary income.
• C)Brandon must recapture $4,200 as ordinary income.
• D)Brandon must amend the previous tax return and recompute depreciation.

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Definitions:

Brings Together

Describes the act of gathering or assembling people, items, or ideas in one location or conceptual framework.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to produce and sell, holding other factors constant.

Demand

The desire for a particular good or service combined with the ability and willingness to pay for it.

Emergent Property

A characteristic or phenomenon that arises from the interaction and organization of individual components in a system, not predictable from the properties of the individual parts.