City taxi service purchased a new auto to use as a taxi on january $1,$ year $1$ for $$36,000.$ in addition, city paid sales tax and title fees of $$1,200$ for the vehicle. the taxi is expected to have a five year life and salvage value of $$4,000.$ a$.$ using the straight line method, compute the depreciation expense for year $1$ and year $2.$ b&c: assume that taxi was sold on january $1,$ year $3$ for $$22,000.$ prepare the general journal entries to record the year $1$ depreciation and sale of the taxi in year $3$