2. The cost (cost basis) of a new tugboat for your company was 900,000. What is the depreciation allowance for year 4 using MACRS (describe your reasoning). Repeat the tugboat and cost basis, but now give the depreciation for each of the first three years using double declining balance. The lifetime of boat will be taken as 20 years in this problem. There will be a solution for year one, a year two solution and a year three solution