On January 1, 2021, Carson Corp purchases a tow truck for $120,000 to add to their
fleet of tow trucks. They estimate a residual value of $10,000 and expect a useful life
of 10 years. They also estimate 200,000 miles of use. In 2021, they drive the tow truck 28,000 miles.
Requirement 1:
Prepare the 2021 depreciation journal entry on December 31, 2021 AND provide the
book value of the tow truck as of December 31, 2021 using straight-line depreciation.

Requirement 2:
Prepare the 2021 depreciation journal entry on December 31, 2021 AND provide the
book value of the tow truck as of December 31, 2021 using double-declining balance depreciation.

Requirement 3:
Prepare the 2021 depreciation journal entry on December 31, 2021 AND provide the
book value of the tow truck as of December 31, 2021 using activity-based depreciation.

YOUR ANSWER SHOULD INCLUDE: 3 JOURNAL ENTRIES AND THE BOOK VALUE OF THE TRUCK AT THE END OF THE YEAR FOR ALL 3 METHODS. SHOW YOUR WORK.