Exercise 6-11A (Algo) Events related to the acquisition, use, and disposal of a tangible plant...
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Exercise 6-11A (Algo) Events related to the acquisition, use, and disposal of a tangible plant asset: Straight-line depreciation LO 6-2, 6-5 City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1 , for $25,100. In addition, City paid sales tax and title fees of $1,010 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,110. 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.) b. Assume the auto was sold on January 1, Year 3 , for $20,827. Determine the amount of gain or loss that would be recognized on the asset disposal. (Round the intermediate calculations to nearest whole dollar amount.)
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Exercise 6-11A (Algo) Events related to the acquisition, use, and disposal of a tangible plant asset: Straight-line depreciation LO 6-2, 6-5 City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1 , for $25,100. In addition, City paid sales tax and title fees of $1,010 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,110. 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.) b. Assume the auto was sold on January 1, Year 3 , for $20,827. Determine the amount of gain or loss that would be recognized on the asset disposal. (Round the intermediate calculations to nearest whole dollar amount.) 