Final answer:
If an asset's business use drops to 50% or below, the business must recapture the tax benefits it previously claimed on the asset. The correct answer is Recapture; Straight-Line; Bonus.
Step-by-step explanation:
If an asset's business use drops to 50% or below, the business must recapture the tax benefits it previously claimed on the asset. This is because the asset is no longer primarily used for business purposes.
Additionally, the business may need to calculate and report depreciation expense based on the new 50% business use. The two most common methods of depreciation are MACRS (Modified Accelerated Cost Recovery System) and Straight-Line. MACRS allows for higher deductions in the early years of an asset's life, while Straight-Line provides equal deductions over the asset's useful life.
In this case, the correct answer is Recapture; Straight-Line; Bonus.