City Taxi Service purchased a new auto to use as a taxl on January 1, Year 1, for $20,700. In addition, City pald sales tax and title fees of $1,460 for the vehicle. The taxl Is expected to have a five-year lfe and a salvage value of $5,750. Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2 (Round your answers to the nearest whole doller amount.) b. Assume the van was sold on January 1, Year 3, for $17,935. Determine the amount of gain or loss that would be recognized on the asset disposal. (Amounts to be deducted should be Indlcated with minus sign. Round the Intermedlate calculatlons to nearest whole doller amount.) Answer is complete but not entirely correct. 22180 per year s 4.432 per year Year 1 Year 2 Depreciation b. Loss S (4,6391 sale