FEMA - Emergency... Sign in to your acco... Great lakes Imported From IE * Bookmarks 5 New lab Saved Chapter 6 Homework You skipped this question in the previous attempt. 3 City Taxi Service purchased a new auto to use as a taxi on January 1 Year 1, for $25,800. In addition, City paid sales tax and title fees of $910 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 Year 1 and Year 2. (Round your answers to the nearest whole dollar amount.) 4 points b. Assume the auto was sold on January 1, Year 3, for $21,061. Determine the amount of gain or loss that would be recognized on the asset disposal. (Round the intermediate calculations to nearest whole dollar amount.) eBook be a. per year Hint Year 1 Depreciation Year 2 Depreciation per year bi on sale Print o References