City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $22,400. In addition, City paid sales tax and title feed of $1,050 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,630. 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 $19,230. 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. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2 . (Round your answers to the nearest whole dollar amount.)