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 outo to use as a taxi on January 1 Year 1 for $24 300 In addition, City paid sales tax and title foes of $1,110 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,480 Required a. Using the straight line method, compute the depreciation expense for Year 1 and Year 2. (Round your answers to the nearest whole dollar amount.) b. Assume the auto was sold on January 1 Year 3. for $20,514 Determine the amount of gain or loss that would be recognized on the asset disposal (Round the intermediate calculations to nearest whole dollar amount) por your Your 1 Depreciation Your 2 Depreciation per year b on sale