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Exercise 8-11A (Algo) Events related to the acquisition, use, and disposal of a tangible plant...

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Accounting

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Exercise 8-11A (Algo) Events related to the acquisition, use, and disposal of a tangible plant asset: Straight-line depreciation LO 8-2, 8-5 City Taxi Service purchased a new auto to use as a toxi on Jonuary 1, Year 1, for $20700. in addition, Cny pyd sales tax and 1itle fens of $770 for the vehicle. The taxi is expected to have a five-year life and a satvage value of $5,410. Required: a. Using the straight-line method, compute the degreciation expense for Year 1 and Year 2 . Note: Round your answers to the nearest whole dollar amount. b. Assume the auto was sold on January 1, Yeat 3, for 517,303 . Determine the ameunt of gain or loss that would be recognized on the asset disposot. Note: Round the intermediate calculations to nearest whole doltar amount

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