In April of 2016,Brandon Acquired Five-Year Listed Property (Not an Automobile)for

question 11

Multiple Choice

In April of 2016,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 2017,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:

Alcohol

Any organic compound where the hydroxyl functional group (–OH) is bound to a carbon atom.

Aldehydes

Organic compounds characterized by the functional group -CHO, where the carbon atom is double bonded to oxygen and single bonded to hydrogen.

Functional Group

A specific grouping of atoms within a molecule that has a characteristic chemical behavior and properties.

R-(C=O)H

A general formula representing aldehydes, organic compounds where the carbonyl group is bonded to a hydrogen atom.