Requlred Information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1 [The following information applies to the questions displayed below.] The Shir Shop had the following transactions for T-shirts for Year 1, its first year of operations: During the year. The Shirt Shop sold 810 T-shirts for $20 each. Exerclse 5-5 (Algo) Part b b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Exerclse 8-11A (Algo) Events related to the acquisitlon, use, and disposal of a tanglble plant asset: Stralght-llne depreclation LO 8-2, 8-5 City Taxi Service purchased a new auto to use as a taxi on January 1. Year 1, for $21,200. In addition, City paid sales tax and title fees of $1,180 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,300. Requlred: o. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2 Note: Round your answers to the nearest whole dollar amount. b. Assume the auto was sold on January 1, Year 3 , for $18,340. Determine the amount of gain or loss that would be recognized on the asset disposal. Note: Round the Intermedlate calculations to nearest whole dollar amount