Bison Transport is a large trucking company that operates from Ontario to British Columbia in Canada and in the United States. Bison uses the units-of-production (UOP) method to depreciate its trucks because its managers believe UOP depreciation best measures wear and tear.

Bison Transport trades in its trucks often to keep driver morale high and maximize fuel efficiency. Assume that in 2011, the company acquired a tractor-trailer rig costing $280,000 and expected it to remain in service for five years or 1,000,000 km. Estimated residual value would be $40,000. During 2011, the truck was driven 130,000 km; during 2012, 180,000 km; and during 2013, 180,000 km. After 90,000 km in 2014, the company wishes to trade in the tractor-trailer rig for a new rig. Determine the carrying value of the rig and prepare the journal entry to derecognize the rig.