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In May 2014,Stephen Acquired a Used Automobile for $12,000 and Used

Question 68

Multiple Choice

In May 2014,Stephen acquired a used automobile for $12,000 and used the automobile 75% for business.No Sec.179 election was made.In 2015,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 2015 depreciation
B) Stephen's depreciation in 2015 is $2,250.
C) Stephen must recapture $900 as ordinary income in 2015
D) Stephen must amend the 2015 tax return and recompute depreciation.

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