Exercise 8-11A 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 $29,500. In addition, City paid sales tax and title fees of $950 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $5,090 Required a. Using the straight-line method, compute the depreciation expense forYear 1 and Year 2. b & c. Assume that the taxi was sold on January 1, Year 3, for $23,352. Prepare the general journal entries to record the Year 1 depreciation and sale of the taxi in Year 3. 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 $23,352. 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.) Date General Journal Debit Credit Year 1 Depreciation expense 5,072 Accumulated depreciation 5,072 Year 3 Cash 23,352 Equipment Gain on sale 20,310 3,046 Accumulated depreciation 10,140