MARYLAND CORP. PURCHASED A 7 YEAR ASSET IN JULY FOR $200,000. MORE THAN 40% of the total deductions for taxable year were PLACED IN SERVICE DURING THE FOURTH QUARTER. NO STRAIGHT LINE, 150% DECLINING BALANCE METHOD WAS USED.COMPANY ELECTS OUT OF BONUS DEPRECIATION AND SECTION 179 EXPENSE DEDUCTION. SOLD THE 7 YEAR PROPERTY IN MARCH OF YEAR 3. WHAT IS AMOUNT ALLOWABLE IN YEAR OF SALE. USE MODIFYING

CONVENTION AS USED IN THE FIRST YEAR.

2,885

4,555

18,220

36,440