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 $24,800. In addition, City paid sales tax and title fees of $630 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,120. 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 $20,362. Prepare the general journal entries to record the Year 1 depreciation ond sale of the taxi in Year 3. Complete this question by entering your answers in the tabs below. Req A Req B and COS Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. (Round your answers to the nearest whole dollar amount.) Year 1 Year 2 Depreciation expenso Red Band > Red A Req B and C Assume that the taxi was sold on January 1, Year 3, for $20,362. 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.) View transaction list Journal entry worksheet 1 2 Record depreciation expense. ntes Note: Enter debits before credits General Journal Debit Credit Date Year 1 Record entry Clear entry View general Journal