City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $23,300. In addition, City paid sales tax and title fees of $1,030 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,490. 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 $19,773. Prepare the general journal entries to record the Year 1 depreciation and sale of the taxi in Year 3 Answer is not complete. 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 doliar amount.) City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $23,300. In addition, City paid sales tax and title fees of $1,030 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,490. 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 $19,773. Prepare the general journal entries to record the Year 1 depreciation and sale of the taxi in Year 3 . Answer is not complete. Complete this question by entering your answers in the tabs below. Assume that the taxi was sold on January 1, Year 3, for $19,773. 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.)