Pact Truck Company is a large trucking company. The company uses the units-of-production (UOP) method to depreciate its trucks. To follow are facts about one Mack truck in the company's fleet. (Click the icon to view the facts.) Read the requirements. Requirement 1. Determine Pact's gain or loss on the transaction. Begin by determining the formula needed to calculate the gain or loss and then complete the calculation to determine the amount. (Use a minus sign or parentheses for a loss. Round depreciation per unit to the nearest cent.) = Gain (Loss) on exchange Requirement 2. Prepare the journal entry to record the trade-in of the old truck on the new one. Use two decimal places for depreciation cost per mile. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Requirements. Accounts Debit Credit 1. Determine Pact's gain or loss on the transaction. 2. Prepare the journal entry to record the trade-in of the old truck for the new one. Use two decimal places for depreciation cost per mile. More info When this truck was acquired in 2021, the tractor-trailer rig had cost $400,000 and was expected to remain in service for 10 years or 1,000,000 miles. Its estimated residual value was $70,000. During 2021, the truck was driven 85,000 miles; during 2022, 165,000 miles; and during 2023, 175,000 miles. After the truck was driven 43,000 miles in 2024, the company traded in the Mack truck for a Freightliner truck with fair market value of $230,000. In addition to the trade-in of the Mack truck, Pact Truck Company paid cash of $26,000 for the Freightliner truck. Print Done