The MACRS basis of 5-year property acquired on December 3, 20X1 is $10,000. No Section 179 or bonus depreciation is taken on the property. The property is sold on September 4, 20X2. If the mid-quarter convention applies to personal property acquired in 20X1 and regular (accelerated) MACRS is used, depreciation expense for 20X2 is:

Question 28 options:

1)

$3,800.

2)

$1,900.

3)

$2,375.

4)

$3,008.

5)

$2,692.