City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1 , for $29,500. In addition, City paid sales tax and title fees of $1,300 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,100. 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 $24,058. Determine the amount of gain or loss that would be recognized on the asset disposal. Round the intermediate calculations to nearest whole dollar amount