5.

Sam the Butcher acquires the following new seven-year class property in 2021. Use $1,050,000 as the maximum 179 amount:

Asset	Acquisition Date	Cost
A	February 10	$508,000
B	August 16	1,200,000
C	December 20	365,000

Sam elects 179 for Asset B only. Sam's taxable income from the butcher shop would not create a limitation for purposes of the 179 deduction. Sam elects not to take the additional first-year depreciation.

State the convention (half-year or mid-quarter) that will be used when calculating the depreciation and show the calculation as to why that convention should be used