On January 1, 2019, Elliott Leasing, Inc. purchases a tow truck for $100,000 to add to their
fleet of tow trucks. They estimate a residual value of $10,000 and expect a useful life
of 5 years. They also estimate 360,000 miles of use. In 2019 they drive the tow truck
70,000 miles.

Required:
Prepare the 2019 depreciation journal entry on December 31, 2019 AND provide the book
value of the tow truck as of December 31, 2019 using straight-line depreciation.

Required:
Prepare the 2019 depreciation journal entry on December 31, 2019 AND provide the book
value of the tow truck as of December 31, 2019 using double-declining balance depreciation.

Required:
Prepare the 2019 depreciation journal entry on December 31, 2019 AND provide the book
value of the tow truck as of December 31, 2019 using activity-based depreciation