City Taxi Service purchased a new auto to use as a taxi on January 1 Year 1, for $26,900. In addition, City paid sales tax and title fees of $1,250 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,420. 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 $22,377. 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. Reg A Req B and C Assume that the taxi was sold on January 1, Year 3, for $22,377. Prepare the general journal entries to record the Year i 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.) View transaction list Journal entry worksheet 1 2 Record depreciation expense. Note: Enter debits before credits General Journal Debit Credit Date Year 1 entry is required for a transaction/event, select "No journal View transaction list Journal entry worksheet 1 Record entry for sale of taxi and gain on sale. Note: Enter debits before credits. Date General Journal Debit Credit Year 3