On $01$ October $2018,$ Petty Erands delivery services acquired a new truck with a list price $($fair Value$)$ of Kshs$.7,500,000$ from Tata Motors Ltd$.$ Petty Errands Limited received a trade in allowance of $2,400,000$ of an old truck of similar type and paid Kshs$.5,100,000.$

The following information about the old truck is obtained from the account in the equipment ledger: Cost $5,600,000$ Accumulated depreciation $3,500,000.$ Assuming the exchange has commercial substance,

Required:

i$.$ What is the book value of the old truck at the time of exchange? $(2$ Marks$)$ it$.$ Determine the gain $/$loss on this asset exchange. $(2$ Marks$)$ ini. Journalize the entries to record the exchange transaction.