Covenant Freight is a large warehousing and distribution company that operates throughout Eastern Canada, Covenant Freight uses the UOP method to amortize its trucks because its managers believe UOP amortization best measures the wear and tear on the trucks. Covenant Freight trades in used trucks often to keep driver morale high and to maximize fuel efficiency. Consider these facts about one Mack truck in the company's Meet When acquired in 2016, the tractor/trailer nig cost $670,000 and was expected to remain in service for eight years, or 1,400,000 kilometres. Estimated residual value was $100,000 The truck was driven 200,000 kilometres in 2017. 225.000 kilometres in 2018, and 265,000 kilometres in 2019. After 90,000 kilometres in 2020, the company traded in the Mack truck for a Freightliner rig with a fair market value of $520,000 on August 15. Covenant Freight paid cash of $42,000. This trade-in will bring in significantly more income to Covenant Freight by reducing operating costs. Determine Covenant Freight's cost of the new truck. Prepare the journal entry to record the trade-in