Company X purchased 5-year MACRS property for $200,000 and placed it in service on November 15 of the current year. This was the only personal property placed in service during the year. Which depreciation convention must Company X use?

The mid-quarter convention applies to all personal property placed in service during the year if more than 40% of the total basis of such property is placed in service during the last three months of the tax year. Since 100% of the property was placed in service in November (Q4), the mid-quarter convention applies.