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 $21.900. In addition, City pald sales tax and title fees of $1,220 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $5,830. 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 $18,635. 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. Reg A Req B and C 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 expense 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 $21,900. In addition, City paid sales tax and title fees of $1,220 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $5,830. 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 $18.635. 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. Reg A Reg B and c Assume that the taxi was sold on January 1, Year 3, for $18,635. 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 Record depreciation expense. Note: Enter debits before credits. Date General Journal Debit Credit Year 1 Record entry Clear entry View general journal