City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $26,200. 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 $5,440. 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 $21,305. Prepare the general journal entries to record the Year 1 depreciation and sale of the taxi in Year 3.

	Year 1	Year 2
Depreciation expense	$4,362	$4,362

what would be the general journal entries for year 1 and year 3?

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 $21,305. 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. Book Req A Req B and c Assume that the taxi was sold on January 1, Year 3, for $21,305. 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.) rint View transaction list -rences Journal entry worksheet 1 2 Record depreciation expense. Note: Enter debits before credits. Debit Credit Date General Journal Year 1 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 $21,305. 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. 3 Dok Req A Req B and C Assume that the taxi was sold on January 1, Year 3, for $21,305. 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.) nt View transaction list ences Journal entry worksheet 1 2 Record entry for sale of taxi and gain on sale. Note: Enter debits before credits. Date Debit General Journal Credit Year 3