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Chapter 6 Homework 3 City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $26,200. In addition, City paid sales tax and title fees of $1,330 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,190. Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. Note: Round your answers to the nearest whole dollar amount. 40 points eBook 101 Hint Print References b. Assume the auto was sold on January 1, Year 3, for $21,843. Determine the amount of gain or loss that would be recognized on the asset disposal. Round the intermediate calculations to nearest whole dollar amount. a. Year 1 Depreciation a. Year 2 Depreciation b. Saved on sale per year per year Hel

City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $26,200. In addation. City paid sales tax and title fees of \$1:330 for the vehicle. The taxi is expected to have a five-year tife and a salvage value of \$6,190. Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2 Note: Round your answers to the nearest whole dollot amount. b. Assume the auto was sold on January 1, Year 3 , for $21.843 Determine the amount of gain or loss that would be recognized on the asset disposal Round the intermediate calculations to nearest whole dollar amourit