Triad Freight is a large warehousing and distribution company that operates throughout Eastern Canada. Triad Freight uses the UOP method to amortize its trucks because its managers believe UOP amortization best measures the wear and tear on the trucks. Triad Freight trades in used trucks often to keep driver morale high and to maximize fuel efficiency. Consider these facts about one Mack truck in the company's fleet:

When acquired in 2013, the tractor/trailer rig cost $585,000 and was expected to remain in service for eight years, or 1,500,000 kilometres. Estimated residual value was $60,000. The truck was driven 150,000 kilometres in 2014, 195,000 kilometres in 2015, and 235,000 kilometres in 2016. After 100,000 kilometres in 2017, the company traded in the Mack truck for a Freightliner rig with a fair market value of $510,000 on August 15. Triad Freight paid cash of $40,000. This trade-in will bring in significantly more income to Triad Freight by reducing operating costs. Determine Triad Freight's cost of the new truck. Prepare the journal entry to record the trade-in.