KJD Inc., a calendar year corporation, purchased $923,000 of equipment on November 13. This was KJD's only purchase of tangible personalty this year. KJD must use a midquarter convention to compute MACRS depreciation on the equipment.

Question

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When a company makes more than 40% of its total property purchases in the last quarter of the year, it must use the midquarter convention to determine MACRS depreciation. Since KJD Inc. made its only purchase of tangible personalty in November, it is likely that over 40% of its property purchases were made in the last quarter. Therefore, KJD must use the midquarter convention to compute MACRS depreciation on the equipment.

KJD Inc, a Calendar Year Corporation, Purchased $923,000 of Equipment on on November