In calculating 179 expense, do you assume you use the half-year convention tables.

For an example, if the problem does not say mid quarter, or half-year convention, do you automatically use half year?

See example attached. They used the MACRS half-year convention table. Can you explain why they use the half-life convention?

! Required information {The following information applies to the questions displayed below.) AMP Corporation (calendar-year-end) has 2020 taxable income of $1,900,000 for purposes of computing the $179 expense. During 2020, AMP acquired the following assets: (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5. Asset Machinery Computer equipment Office building Total placed in Service September 12 February 10 April 2 Basis $1,390,000 410,000 525,000 $2,315,000 b. What is the maximum total depreciation, including $179 expense, that AMP may deduct in 2020 on the assets it placed in service in 2020, assuming no bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Maximum total depreciation (including $179 expense) $ 1.180.136 Explanation b. The maximum depreciation deduction is $1,180,136 (half-year convention). Depreciation is maximized by applying the $179 expense against 7-year rather than 5-year property. Asset Machinery (7-year) Computer Equipment (5-year) Office building (39 year) $179 Expense Total cost recovery Original $179 Remaining Basis Expense Basis Bate $ 1,380,000 $1,040,000 $340,000 14.29% $ 410,000 $ 410,000 20.00% $ 525,000 $ 525,000 1.3198 Depreciation Deduction $ 48,586 $ B2,000 $ 9,550 $1,040,000 $1,180,136