City taxi service purchased a new auto to use as a taxi on january 1, 2018, for $36,000. in addition, city paid sales tax and title fees of $1,200 for the vehicle. the taxi is expected to have a five-year life and a salvage value of $4,000. required using the straight-line method, compute the depreciation expense for 2018 and 2019. assume the van was sold on january 1, 2020, for $21,000. determine the amount of gain or loss that would be recognized on the asset disposal. (amounts to be deducted should be indicated with minus sign.)

Prohibition outlawed production and sale of alcohol. (by the way al capone rised during these times)

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan