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 year
2019 Depreciation $6,640 per year
b. Loss on sale $23,720
cant get the lost correcy