During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a fair market price of$120,000. it replaced an older, smaller mixing tank that had a bv of $15,000. because a special promotion was underway, the old tank was used as a trade-in for the new one, and the cash price ancluding delivery and installation) was set at$99,500. the macrs class life for the new mixing tank is 9.5 )years. problem 1 and 2a. under the gds, what is the depreciation deduction in year three? b. under the gds, what is the ev at the end of year four? c. if 200% db depreciation had been applied to this problem, what would be the cumulative depreciation through the endof year four? problem 1explain the difference between real and personal property. (problem)problemwhat conditions must a property satisfy to be considered depreciable? problem 2explain how the cost basis of depreciable property is determined.