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 $860 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,420. Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. (Round your answers to the nearest whole dollar amount.) b. Assume the auto was sold on January 1, Year 3, for $21,832. Determine the amount of gain or loss that would be recognized on the asset disposal. (Round the intermediate calculations to nearest whole dollar amount.) 1. Award: 4.00 points a. Year 1 Depreciation Year 2 Depreciation b. per year per year on sale 52815 OPP ON of anoisiuola Bisiberiani and bruo) azol to niso to inoms adi onim