On November 7, a calendar year business placed in service $900,000 of 3-year recovery property. If this was the only property placed in service during the year, MACRS depreciation is computed using the:
A) Mid-month convention
B) Mid-quarter convention
C) Mid-year convention
D) Daily pro-ration method

Question

Quizplus · Accepted Answer

The mid-quarter convention is used because more than 40% of the total depreciable basis of property was placed in service in the last quarter of the year.

On November 7, a Calendar Year Business Placed in Service