Problem 7-14 (algorithmic)

E Question Help Problem 7-14 (algorithmic) During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a fair market price of $117,000. lt replaced an older, smaller mixing tank that had a BV of $13,000. Because a special promotion was underway, the old tank was used as a trade-in for the new one, and the cash price (including delivery and installation) was set at $98,500. The MACRS class life for the new mixing tank is 9.5 years. E Click the icon to view the partial listing of depreciable assets used in business Click the icon to view the GDS Recovery Rates (rk) a. Under the GDS, what is the depreciation deduction in year three? The depreciation deduction in year three is S (Round to the nearest dollar.)