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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.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.)a. 2018 Depreciation $6,640 per year2019 Depreciation $6,640 per yearb. Loss on sale $23,720
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City Taxi Service purchased a new auto to use as a taxi on January 1, 2018, for $36,000. In addition...
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