Exercise 8-11A (Algo) Events related to the acquisition, use, and disposal of a tangible plant asset: straight-line depreciation LO 82,85 City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $24,400. In addition, City paid sales tax and title fees of $1,460 for the vehicle. The taxi is expected to have a flve-year life and a salvage value of $5,320. 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 $20.291. Prepare the general journal entries to record the Year 1 depreciation and sale of the taxd in Year 3 . Complete this question by entering your answers in the tabs below. Assume that the taxi was sold on January 1, Year 3, for $20,291. Prepare the general foumal entries to record the Year 1 depreciation and sale of the taxi in Year 3 . (It no entry is required for a transaction/event, select "No jouirnat entry required" in the first account field.) Journal entry worksheet