Exercise 8-9A 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, 2016, for $22,600. In addition, City paid sales tax and title fees of $1,190 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $5,720. Required a. Using the straight-line method, compute the depreciation expense for 2016 and 2017. (Round your answers to the nearest whole dollar amount.) 2016 2017 Depreciation expense b. Prepare the general journal entry to record the 2016 depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)