1. Entity A is a listed company that operates the cargo truck business in Hong Kong for many years. One of the cargo trucks was purchased on 1 October 2012. This cargo truck is made up of three basic components, i.e. a truck, a cargo and an engine system.

   The truck costs $600,000 with 30 years of useful life. The cargo costs $300,000 with 15 years of useful life. The engine system costs $200,000 with 90,000 hours of useful life. On 30 September 2020, no further capital expenditure had been incurred on the cargo truck.

   At the year-end of 30 September 2020, the cargo truck had experienced several times late deliveries. Entity A had suffered a high level of repair costs and compensation costs recently. After a detailed check-up for the engine system, Entity A decided to replace the existing engine system with a new model.

   The accumulated usage of the engine system on 30 September 2020 was 67,500 hours. On 1 October 2020, Entity A purchased a new engine system at a cost of $280,000. The old engine system was also sold to a second-hand market with a gain on disposal of $34,000. The cash from the disposal was received on 15 November 2020. The expected life of the new engine system was 120,000 hours.

   At the same time as the engine system replacement, Entity A took this opportunity to upgrade the cargo at a cost of $120,000 and repaint the cargo at a cost of $40,000 respectively. After the upgrade of the cargo, it was estimated that their remaining useful life was 20 years. All the replacement and upgrading work on the cargo truck are assumed to have been completed on 1 October 2020.

   The end of the reporting period is 30 September. The cargo truck is measured by the straight-line depreciation method without any residual value.

   At the year-end of 30 September 2021, the cargo truck had used the new engine system for 30,000 hours.

   REQUIRED:

   1. Measure the depreciation expense of the cargo truck for the year ended 30 September 2021. $______________
   2. Measure the carrying amount of the cargo truck on 30 September 2021. $______________
   3. Measure the cash received from the sale of the old engine system on 15 November 2020. $______________