Modified Accelerated Cost Recovery System $($MACRS$)$ and Bonus Depreciation $($LO $8\mathrm{.}2)$

Complete the paragraph below that explains the use of the mid$-$quarter convention for MACRS depreciation.

When a taxpayer acquires more than

fill in the blank $1$ of $4$

of its MACRS depreciable property $($other than real estate$)$ during the

fill in the blank $2$ of $4$

quarter of the year, the taxpayer must use the mid$-$quarter convention in calculating depreciation rather than the half$-$year convention. This treatment requires all assets purchased

fill in the blank $3$ of $4$

be treated as purchased in the

fill in the blank $4$ of $4$

$.$