49 Algo Events related to the acquisition use and disposal

Last updated: 4/16/2023

49 Algo 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 25 600 In addition City pald sales tax and title fees 590 for the vehicle The taxi is expected to have a five year life and a salvage value of 5 540 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 20 620 Prepare the general Journal entries to record the Year 1 depreciation and sale of the taxi In Year 3 Complete this question by entering your answers in the tabs below Req A Req B and C Using the straight line method compute the depreciation expense for Year 1 and Year 2 Round your answers to the nearest whole dollar amount Depreciation expense Year 1 Year 2