City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $29,000. 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 $5,540. Required: a. Using the straight-line method, compute the depreclation expense for Year 1 and Year 2. Note: Round your answers to the nearest whole dollar amount. b. Assume the auto was sold on January 1, Year 3, for $23,421. Determine the amcunt of gain or loss that would be recognized on the asset disposal. Note: Round the intermediate calculations to nearest whole dollar amount