City Taxi Service purchased a new auto to use as a taxd on January 1, Year 1, for $24,900. In addition, Crty paid sales tax and title fees of $790 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,700. 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 \$20,808. 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 depreclation expense for Year 1 and Year 2 . (Round your answers to the nearest Whole doliar amount.) Journal entry worksheet