Mesilla Valley Transport is a large trucking company. Mesilla Valley Transport uses the units-of-production (UOP) method to depreciate its trucks. In 2013, Mesilla Valley Transport acquired a Mack truck costing $ 350,000 with a useful life of 10 years or 1 million kilometers. Estimated residual value was $ 100,000. The truck was driven 80,000 kilometers in 2013, 120,000 kilometers in 2014, and 160,000 kilometers in 2015. After 40,000 kilometers in 2016, Mesilla Valley Transport traded in the Mack truck for a new Freightliner that cost $ 480,000. Mesilla Valley Transport received a $ 275,000 trade- in allowance for the old truck and paid the difference in cash. Journalize the entry to record the purchase of the new truck.
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