City Taxi Service purchased a new auto to use as a taxi on January 1 Year 1, for $26,000. In addition, City paid sales tax and title fees of $800 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $5,780. 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 $21,151. 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. ReqA Reg Band Assume that the taxi was sold on January 1, Year 3, for $21,151. 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.) View transaction ist Journal entry worksheet Reg A Req B and C Assume that the taxi was sold on January 1, Year 3, for $21,151. Prepare the general Journal entries to record the Year 1 depredation 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 held.) View transaction list Journal entry worksheet Record depreciation expense. Note: Enter debits before credits Date General Journal Debit Credit Year 1 Record entry Clear entry View general Journal Req A ReqB and C Assume that the taxi was sold on January 1, Year 3, for $21,151. Prepare the general Journal entries to record the Year 1 depreciation and sale of the tax 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