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 fleet: When acquired in 2016, the tractor/trailer rig cost $620,000 and was expected to remain in service for eight years, or 1,700,000 kilometres. Estimated residual value was $100,000. The truck was driven 150,000 kilometres in 2017, 195,000 kilometres in 2018, and 235,000 kilometres in 2019. After 120,000 kilometres in 2020, the company traded in the Mack truck for a Freightliner rig with a fair market value of $510,000 on August 15. Covenant Freight paid cash of $54,000. 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

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