A taxpayer places in service $55,000 of 5-year property on August 16 of the current year, and $45,000 of 7-year property on December 2 of the current year. Assuming the taxpayer elects not to take Section 179 or bonus depreciation, which of the following statements is correct with respect to this taxpayer?

1. The taxpayer uses mid-quarter convention to depreciate both assets
2. The taxpayer uses half-year convention to depreciate both assets
3. The taxpayer uses the half-year convention to depreciate the 5-year property, but uses the mid-quarter convention to depreciate the 7-year property.
4. The taxpayer uses the mid-quarter convention to depreciate the 5-year property, but uses the half-year convention to depreciate the 7-year property.