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On January 1, 2020, Fast & Furious Corporation purchased a new race car for $250,000. The company expects the car to last for 75,000 racing

On January 1, 2020, Fast & Furious Corporation purchased a new race car for $250,000. The company expects the car to last for 75,000 racing hours. The car has an estimated residual value of $45,000.

Required:

  1. Complete the table below by calculating the annual depreciation and book value for each year of the car's estimated useful life using the units of production method. Space has been provided for your calculations. Round to two decimal places.
  2. Assume the actual racing hours for each year were:

2020................. 16,000 2021............... 18,000

2022................. 17,000 2023............... 13,000

2024..11,000

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