Entity A$,$ a publicly listed company, has been operating in the cargo truck business in Hong Kong for many years. One of its cargo trucks, purchased on $1$ October $2016,$ is composed of three primary components: the truck itself, the cargo, and the engine system. The following details pertain to these components' costs and useful lives, as well as subsequent events and transactions involving the cargo truck.

Details:

$1.$ The truck was acquired for $\backslash (\backslash$$ $1,500,000\backslash )$ and has a useful life of $10$ years.

$2.$ The cargo was acquired for $\backslash (\backslash$$ $750,000\backslash )$ and has a useful life of $20$ years.

$3.$ The engine system was acquired for $\backslash (\backslash$$ $500,000\backslash )$ and has a useful life of $300,000$ hours.

As of $30$ September $2024,$ no additional capital expenditure had been incurred on the cargo truck. However, due to several instances of late deliveries and high repair and compensation costs, Entity A decided to replace the existing engine system after a detailed inspection. By this date, the engine system had accumulated $75,000$ hours of usage.

On $1$ October $2024,$ Entity A purchased a new engine system for $\backslash (\backslash$$ $700,000\backslash ).$ The old engine system was sold in the second$-$hand market, resulting in a gain on disposal of $\backslash (\backslash$$ $85,000\backslash ),$ with the cash received on $15$ November $2024.$ The new engine system is expected to have a useful life of $400,000$ hours. Concurrently, Entity A upgraded the cargo for $\backslash (\backslash$$ $300,000\backslash )$ and repainted it for $\backslash (\backslash$$ $100,000\backslash ).$ Post$-$upgrade, the remaining useful life of the cargo was estimated to be $20$ years. All replacement and upgrading work was completed on $1$ October $2024.$ The reporting period ends on $30$ September. The cargo truck is depreciated using the straight$-$line method with no residual value. By the year$-$end of $30$ September $2025,$ the new engine system had been used for $95,000$ hours.

REQUIRED:

$1.$ Calculate the depreciation expense of the cargo truck for the year ended $30$ September $\backslash (2025.\backslash$$ $\backslash )$

$2.$ Determine the carrying amount of the cargo truck as of $30$ September $2025.\backslash$$

$3.$ Confirm the cash received from the sale of the old engine system on $15$ November $2024.\backslash$$

$4.$ Determine the carrying amount of the Engine as of $1$ October $2024.\backslash$$

$5.$ Determine the carrying amount of the Engine as of $30$ September $2024.$ :