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New York Limousine Service owns limos and uses the units - of - production method in computing depreciations on its limos . Each limo costing

New York Limousine Service owns limos and uses the units-of-production method in computing depreciations on its limos. Each limo
costing $30,000 is expected to be driven 250,000 miles and is expected to have a salvage value of $2,500. Limo #1 was driven 20,000
miles in year 1 and 21,000 miles in year 2.
Determine the depreciation for each year and the book value at the end of year 2.
a. The depreciation for the first year of use of the limo #1 is $
(Round to the nearest dollar.)
b. The depreciation for the second year of use of the limo #1 is $.
.(Round to the nearest dollar.)
c. The book value at the end of year 2 is $
(Round to the nearest dollar.)
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