Moon Co. had a Class 8 UCC balance of $3,500 at the end of 2020. The company sold its only Class 8 asset on December 31^st, 2021, for $3,000 and purchased a new Class 8 asset the same day for $1,000. Moon Co. has a December 31^st year-end. Which of the following is correct?

Multiple Choice

• Purchasing the $1,000 asset in 2021, rather than 2022, had no impact on Moon's 2021 NITP.

• Purchasing the $1,000 asset in 2021, rather than 2022, resulted in recapture.

• Purchasing the $1,000 asset in 2021, rather than 2022, caused a decrease in Moon's 2021 NITP.

• Purchasing the $1,000 asset in 2021, rather than 2022, caused an increase in Moon's 2021 NITP.