City Taxi Service purchased a new auto to use as a taxi on January 1 Year 1, for $27,300. In addition, City paid sales tax and title fees of $630 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $5,880. 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 $21,977. Prepare the general 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. Req A Reg B and C Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. (Round your answers 1 whole dollar amount.) Year 1 Year 2 Depreciation expense Record depreciation expense. Note: Enter debits before credits. General Journal Debit Credit Date Year 1