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 en January 1, 2016, for $28400, In addition, City paid sales tax and title fees of $750 for the vehide. The taxi is expected to have a Meyear life and a salvage value of $6800. a Using the straight-line method, compute the depreciation expense for 2016 and 2017. (Round your answers to the nearest whole dollar amount. Depreciation expense