City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $26,900, In addition, City paid sales tax and tite fees of $850 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,800. 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 $22,276. Prepare the generai 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. Assume that the taxi was sold on January 1 , Year 3 , for $22,276. Prepare the general journal entries to record the Year 1 depreciation and sale of the taxi in Year 3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record entry for sale of taxi and gain on sale. Note: Enter debits before credits