Exercise 8-11A (Algo) Events related to the acquisition, use, and disposal of a tangible plant asset: straight-line depreciation LO 8-2, 8-5 City Taxi Service purchased a new auto to use as a taxi on January 1 , Year 1, for $29,400. In addition, Clity pald sales tax and titie fees 0 $1,190 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,570. 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 $24,129. Prepare the general joumal entries to record the Year 1 depreciation and sale of the taxi in Year 3. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Assume that the taxi was sold on January 1, Year 3, for $24,129. Prepare the general joumal entries to record the Year 1 depreciation and sale of the taxi in Year 3. (If no entry is required for a transoction/event, select "No joumal entry required in the first account field.)