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City Taxd Service purchased a new auto to use as a taxi on January 1,...

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Accounting

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City Taxd Service purchased a new auto to use as a taxi on January 1, Year 1, for $27,300, in addition, City paid sales tax and tite fees of $1,450 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,550. Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. b \& c. Assume that the taxi was sold on January 1, Year 3, for \$22,851, Prepare the general joumal entries to record the Year 1 depreciation and sale of the taxi in Year 3. Complete this question by entering your answers in the tabs below. Using the straight-line method, compute the depreclation expense for Year 1 and Year 2 . (Round your answers to the nearest whole dollar amount

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