Covenant Truck Company is a large trucking company that operates throughout the United States. Covenant Truck Company uses the units-of-production (UOP) method to depreciate its trucks. The company trades in trucks often to keep driver morale high and to maximize fuel economy. Consider these facts about one Mack truck in the company's fleet: When acquired in 2016. the tractor-trailer rig cost $400,000 and was expected to remain in service for 10 years or 1,000,000 miles. Estimated residual value was $90,000. During 2016, the truck was driven 85,000 miles; during 2017, 165,000 miles; and during 2018, 175,000 miles. After 41,000 miles in 2019, the company traded in the Mack truck for a less-expensive Freightliner with a sticker price (fair market value) of $230,000. Covenant Truck Company paid cash of $29,000. Determine Covenant's gain or loss on the transaction. Prepare the journal entry to record the trade-in of the old truck on the new one