Chec 11 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 5 points City Taxi Service purchased a new auto to use as taxi on January 1 Year 1, for $23,500. In addition City paid sales tax and the fees of $1170 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $5.790 Required a. Using the straight-line method, compute the depreciation expense for Yoor 1 and Year 2. (Round your answers to the nearest whole b. Assume the auto was sold on January 1 Year 3, for $19.686. Determine the amount of gain or loss that would be recognized on the asset disposal (Round the intermediate calculations to nearest whole dollar amount.) Book dollar amount.) References Year 1 Depreciation Year 2 Depreciation per year per year b. on sale Gain Loss