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Five-Year Property Costing $25,000 Was Placed in Service on January

Question 101

Multiple Choice

Five-year property costing $25,000 was placed in service on January 11 of the current year. fte property is depreciated using straight-line MACRS. Assuming neither bonus depreciation nor Code Sec. 179 is elected and the mid-quarter convention applies to all five-year property placed in service this year, what will be depreciation expense with regard to this property for the current year?


A) $625
B) $5,000
C) $4,375
D) $3,045
E) $2,500

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