4. 12.9 Your self-employed friend tells you that he is able to legally use depreciation write-off on his income tax return for his car, since he uses it part time in his business travel. He said the car is book depreciated over a 5-year period by the SL method and after 3 years it has BV3 = $62,000 with an annual depreciation of $26,000. Determine

(a) the first cost of the car, and

(b) what he assumed to be the trade-in value after 5 years.