City Taxi Service purchased a new auto to use as a taxi on January 1. Year 1. for $36,000. In addition, City paid sales tax and title fees of $1200 for the vehicle. The taxi is expected to have a five year life and a salvage value of $4,000, Required o. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2 b. Assume the auto was sold on January 1, Year 3. for $21.000. Determine the amount of gain or loss that would be recognized on the asset disposal a Year 1 Depreciation Year 2 Depreciation per year per year b on sale Gain Loss