Olga Corporation, a calendar year taxpayer, purchased an item of three-year property costing $10,000 on February 1, 2008. It sells the property on October 21, 2010.
a. Compute Olga's depreciation expense for 2008-2010 assuming the half-year convention applies to all three-year property placed in service during 2008.
b. Compute Olga's depreciation expense for 2008-2010 assuming the mid-quarter convention applies to all three-year property placed in service during 2008.