City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $23,700. In addition, City paid sales tax and title fee $1,070 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $5,840. 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 $19,778. Prepare the general journal entries to record the Year 1 depreciation and sale of the taxi in Year 3. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B and C Assume that the taxi was sold on January 1, Year 3, for $19,778. 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.) No General Journal Credit Date Year 1 Debit 3,786 Depreciation expense Accumulated depreciation 3,786 Year 3 Accumulated depreciation Cash Gain on sale 19,778 X 19,778 3,786 >