Jack Did Not Depreciate One of His Machines That Cost

Multiple Choice

Jack did not depreciate one of his machines that cost $40,000 because he had net operating losses for the last two years.Which of the following statements is true?

A) Jack's basis in the asset is $40,000 this year.
B) Jack can deduct three year's depreciation in the current year.
C) Jack must file amended returns to claim the depreciation for prior years.
D) If Jack sells the machine for $20,000 this year, he has a $20,000 loss.