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City Taxi Service purchased a new auto to use as a taxi on January 1 , Year 1 , for $ 2 0 , 8
City Taxi Service purchased a new auto to use as a taxi on January Year for $ In addition, City paid sales tax and title fees of $ for the vehicle. The taxi is expected to have a fiveyear life and a salvage value of $
Required:
a Using the straightline method, compute the depreciation expense for Year and Year
Note: Round your answers to the nearest whole dollar amount.
b Assume the auto was sold on January Year for $ Determine the amount of gain or loss that would be recognized on the asset disposal.
Note: Round the intermediate calculations to nearest whole dollar amount.
tableaYear Depreciation,,per yearaYear Depreciation,,per yearbon sale,
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