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:

Dream Interpretation

The analysis of dreams to uncover underlying meanings and psychological insights, often used in psychotherapy and cultural studies.

Freudian Slips

Mistakes in speech that are theorized to unconsciously reveal something hidden in the speaker's mind, according to psychoanalytic theory.

Hypnosis

A trance-like state of focused attention, reduced peripheral awareness, and increased responsiveness to suggestion, often used for therapeutic purposes.

Topographic Model

Freud’s original model of personality structure, in which personality is divided into three different levels of awareness.