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 $23.700. In addition, City paid sales tax and the fees of $680 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,480 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 $19,803. Prepare the general journal entries to record the Year 1 depreciation and sale of the taxi in Year 3. Req A Reg B and C Assume that the taxi was sold on January 1, Year 3, for $19,803. Prepare the general joumal entries to record the Year 1 depreciation and sale of the taxi in Year 3. (Ir no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Date Year 1 1 Debit Credit General Journal Depreciation expense Accumulated depreciation 3,580 3,580 2 Year 3 Cash Accumulated depreciation Gain on sale Taxi 17,900 7.160 00 24,380 ( ReqA ROC