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Exercise 8-11A Events related to the acquisition, use, and disposal of a tangible plant asset: straight-line depreclatlon LO 8-2, 8-5 Clty Taxi Service purchased a

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Exercise 8-11A Events related to the acquisition, use, and disposal of a tangible plant asset: straight-line depreclatlon LO 8-2, 8-5 Clty Taxi Service purchased a new auto to use as a taxi on January 1. Year 1, for $36.000. In addition, City pard sales tax and title fees of $1.200 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $4,000. 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 $22.000. 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. hots Reg A Reg Bandc Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. Year 1 Year 2 Depreciation expense Reg Band C> City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $36,000. In addition, City pald sales tax and title fees of $1,200 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $4,000. Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2 b&c. Assume that the taxl was sold on January 1, Year 3. for $22,000. Prepare the general Journal entries to record the Year 1 depreciation and sale of the taxt In Year 3. Complete this question by entering your answers in the tabs below. Req A Reg B and C Assume that the taxi was sold on January 1, Year 3, for $22,000. 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 joumal entry required in the first account field.) View transaction at Journal entry worksheet Record depreciation expense. Note: inter debits before credits Date General Journal Debit Credit Year Record entry Clear entry View genom

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