In April of 2012,Brandon Acquired Five-Year Listed Property (Not an Automobile)for

question 90

Multiple Choice

In April of 2012,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 2013,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:

Diathesis-Stress Model

A psychological theory that explains behavior as a predisposed vulnerability together with stress from life experiences.

Biological Predisposition

The inherent likelihood due to genetic factors to develop certain conditions or behaviors.

Psychosocial Stressors

Events, situations, or environmental factors that may cause stress affecting an individual's psychological and social well-being.

Postpartum Psychosis

A rare psychiatric emergency that occurs in new mothers, characterized by severe symptoms such as delusions, hallucinations, and mood swings.