Brampton Transport is a large trucking company that operates from Ontario to British Columbia in Canada and in the United States. Brampton uses the units of production (UOP) method to depreciate s trucks because its managers believe UOP depreciation best measures wear and tear Brampton Transport trades in its trucks often to keep driver morale high and maximize fuel efficiency Assume that in 2017 the company acquired a tractor-trailer rig costing $280,500 and expected it to remain in service for five years or 1,100,000 km. Estimated residual value would be $49,500. During 2017, the truck was driven 181,500 km, during 2018, 214,500 km and during 2019, 214.500 km After 88,000 km in 2020, the company wishes to trade in the tractor-trader ng for a new rig. Assume the trade in value of the old rig is 50 sport trades in its trucks often to keep du we years or 1,100,000 km. Estimated res mpany wishes to trade in the tractor-tra Prepare the journal entry to derecogni Oute the carrying amount of the tractor-t ulated depreciation is rying amount of the rig (Round your ount is $ Requirements 1. Prepare the journal entry to derecognize the rig 2. What effect does the derecognition on the financial statements? Print Done - X r-trailer ng costing $280,500 and expected a bo km, and during 2019, 214,500 km. After B alculations. Round your final answer to t Requirement 1. Prepare the joumal entry to derecognize the rig In order to compute the carrying amount of the tractor trader rig, compute the total accumulated depreciation for the rig (Hold all decimals for interim calculations. Round your final answer to the nearest dollar) The total accumulated depreciation is 5 Compute the carrying amount of the ng (Round your answer to the nearest dollar.) The carrying amount is $ Complete the journal entry to derecognize the rig (Record debits first, then credits. Explanations are not required. Round your answers to the nearest dollar) Complete the journal entry to derecognize the ng (Record debits first, then credits. Explanations are not required. Round your answers to the nearest dollar) Date Accounts Debit Credit Requirement 2. What effect does the derecognition have on the financial statements? What effect does the derecognition have on the income statement? Requirement 2. What effect does the derecognition have on the financial statements? What effect does the derecognition have on the income statement? OA. The gain is treated as an adjustment to liabilities and income will be higher. OB. The loss is treated as an expense and net income will be higher OC. The loss is treated as an expense and net income will be lower OD. The gain is treated as an adjustment to retained earnings and income will be higher. What effect does the derecognition have on the balance sheet? O c. The loss is treated as an expense and net income will be lower OD. The gain is treated as an adjustment to retained eamings and income will be higher What effect does the derecognition have on the balance sheet? OA. The old tractor-trailer ng has been scrapped Total liabeties may be lower as the old ng and its associated note has been removed OB. The old tractor-trailer ng has been traded in for a new one. Current assets may be lower as the new rig's cost may be lower than the old rig Oc. The old tractor-trailer rig has been scrapped. Total assets will be lower as the old rig has been removed OD. The old tractor-trailer rig has been traded in for a new one: Total assets may be higher as new rig's cost may be higher than the old ng