Exercise 4 On January I, 2020, Taco Taqueria, a Mexican rectaurant, purchased equipment for $12,000 cash. Taco Taqueria estimates that the equipment will last five years (useful life). The restaurant expects to sell the equipment for $2,000 at the end of five years. Taco Taqueria prepares financial statements on an annual basis and has a December 31 yearend. a. Record the journal entry on January 1, 2020 . b. What is the formula to calculate straightlline depreciation? c. Using the straight-line depreciation method, calculate the annual depreciation for 2020 (Jan. I to Dec. 31, 2020). d. In order to prepare the annual financial statements, record the adjusting journal entry for depreciation on December 31, 2020