In April of 2017, Brandon acquired equipment which is five-year listed property (not an automobile) for $30,000 and used it 70% for business. Brandon did not claim Sec. 179 or bonus depreciation. In 2018, his business use of the property dropped to 40%. Which of the following statements is true?
A. Brandon must recapture $4,200 as ordinary income.
B. Brandon must amend the previous tax return and recompute depreciation.
C. The change does not affect Brandon's previous depreciation.
D. Brandon must recapture $2,100 as ordinary income.
Answer: D
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