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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 1, Year 1, for $20,800. In addition, City paid sales tax and title fees of $1,050 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,190.
Required:
a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2.
Note: Round your answers to the nearest whole dollar amount.
b. Assume the auto was sold on January 1, Year 3, for $17,924. 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.
\table[[a.,Year 1 Depreciation,,per year],[a.,Year 2 Depreciation,,per year],[b.,,on sale,]]
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