Question 4 of 40.

Bill used the 200% declining balance method to calculate the depreciation on the car that he uses on his farm. Bill may have to report depreciation recapture if __________.

He sells the car at a gain.

His business incurs a net loss.

His business-use percentage drops to 50% or less during the recovery period.

In a subsequent year, he elects to claim the ?179 deduction for another asset with the same recovery period