Tom purchased a 7-year asset for his business in February, 2020 for $4,500 and used the half-year convention for MACRS. He did not deduct any bonus depreciation. He sold the asset in April, 2023. How much depreciation will Tom deduct in 2023?

TABLE 1 MACRS Half-Year Convention

Depreciation Rate for Recovery Period

Year 5-year 7-year

1 20.00% 14.29%

2 32.00 24.49

3 19.20 17.49

4 11.52 12.49

5 11.52 8.93

6 5.76 8.92

7 8.93

8 4.46

Multiple choice question. $214 $281 $562 $187