Question: Exercise 7 - 1 2 ( Static ) Calculate partial - year depreciation ( LO 7 - 4 ) Tasty Subs acquired a food -

Exercise 7-12(Static) Calculate partial-year depreciation (LO7-4)
Tasty Subs acquired a food-service truck on October 1,2026, for $120,000. The company estimates a residual value of $40,000 and a 4-year service life.
Required:
Calculate depreciation expense using the straight-line method for 2026 and 2027, assuming a December 31 year-end.
Determine the financial statement effects of the depreciation in 2026.

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