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

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Accounting

image City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $20,700. In addition, City paid sales tax and title fees of $990 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $5,830. 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 \$17,648. Prepare the general journal 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. Assume that the taxi was sold on January 1 , Year 3 , for $17,648. Prepare the general journal entries to record the Year 1 depreciation and sale of the taxi in Year 3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record depreciation expense. Note: Enter debits before credits

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