Depreciation of property other than real property begins in the middle of the quarter in which it is placed in service when more than:

a. 25% of the total cost of all depreciable property placed in service during the year occurs during the fourth quarter.

b. 40% of the total cost of property less any Sec. 179 deduction placed in service during the year occurs during the fourth quarter.

c. 40% of the total cost of all depreciable property placed in service during the year occurs during the fourth quarter.

d. 25% of the total cost of Sec 179 property placed in service during the year occurs during the fourth quarter.

On May 11, 2018, your calendar year firm pays $6,000 for a computer server, its only asset purchase for the year, and estimates that the server will have a salvage value of $500. If no Sec. 179 deduction is taken and you elect out of 100% bonus, what is your firms maximum 2018 deduction for depreciation?

a. $2,000

b. $1,200

c. $1,100

d. $869