Alice purchases a rental house on August 22, 2017, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining $74,000 allocable to the cost of the land. What is Alice's maximum depreciation deduction for 2017 using MACRS?

a. $2,373

b. $1,970

c. $1,364

d. $1,061

e. $1,009

Please show your calculations and explain how you arrived at your answer. Thank you.