City Taxi Service purchased a new auto to use as a taxi on January 1 , Year 1, for $27,100. In addition, City paid sales tax and title fees of $1,010 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $5,150. 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 \$21,765. Prepare the general journal entries to record the Year 1 depreciation and sale of the taxi in Yeat 3 . Complete this question by entering your answers in the tabs below. Using the straight-line method, compute the depredation expense for Year 1 and Year 2 . (Round Your answers to the nearest whole dollar amount.) City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1 , for $27,100 in addition, City paid sales tax and ttie fees of $1010 for the vehicie. The taxi is expected to have a flve-year life and a salvage value of $5,150. 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 $21,765. Prepare the general journal entries to record the Year 1 depreclation and sale of the taxi in Year 3 . Complete this question by entering your answers in the tabs below. Assume that the taxi was sold on January 1, Year 3, for \$21,765. Prepare the general journat entries to record the Year 1 depreciation and saie of the taxi in Year 3. if no entry is required for a trensaction/event, seiect "No joumal entry required" in the first account field.) Journal entry worksheet