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

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Accounting

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City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $24,100. In addition, City paid sales tax and title fees of $520 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,650. 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 $20,047. 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. Req A Req B and C Assume that the taxi was sold on January 1, Year 3, for $20,047. 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.) View transaction list View journal entry worksheet No Date Debit Credit 1 Year 1 General Journal Loss on sale Cash Accumulated depreciation 15,923 20,047 8,248

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