In May 2018, Stephen Acquired a Used Automobile for $12,000

question 57

Multiple Choice

In May 2018, Stephen acquired a used automobile for $12,000 that he used 75% for business.Neither Section 179 election nor bonus depreciation was claimed.In 2019, 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 2019 depreciation
• B)Stephen's depreciation in 2019 is $2,250.
• C)Stephen must recapture $900 as ordinary income in 2019
• D)Stephen must amend the 2018 tax return and recompute depreciation.

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Definitions:

Income Equalization

Policies or practices aimed at reducing the disparity in income among individuals in an economy.

Utilitarianism

The political philosophy according to which the government should choose policies to maximize the total utility of everyone in society.

Deccan Sultanates

A group of five dynasties that ruled over the Deccan Plateau in south-central India from the 14th to the 17th century, known for their contributions to Indian art and architecture.

Vijayanagar Empire

A prominent South Indian empire known for its wealth, strength, and patronage of the arts and architecture, flourishing between the 14th and 17th centuries.