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:
1) 3,800
2) 1,900
3) 2,375
4) 3,008
5) 2692