City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $25,500 In addition, City paid sales tax and title fees of $1,360 for the vehicle The taxi is expected to have a five year life and a salvage value of $6,210 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,Assume that the taxi was sold on January 1, Year 3, for $21,390 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 )

Question

City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $25,500  In addition, City paid sales tax and title fees of $1,360 for the vehicle  The taxi is expected to have a five year life and a salvage value of $6,210  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,Assume that the taxi was sold on January 1, Year 3, for $21,390  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 )

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City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $25,500. In addition, City paid sales tax

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