City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $26,500. In addition, City paid sales tax and title fees of $770 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,090. Required a. Using the straight-fine 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 $21,618. 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. Using the straight-line method, compute the depreciation expense for Year 1 and Year Z. (Round your answers to the nearest whole dollar amount.) Assume that the taxi was sold on January 1, Year 3, for $21,618. 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.) Journal entry worksheet 2