A Truck Has a New Engine Installed for $155,000 Which

question 1

Essay

A truck has a new engine installed for $155,000 which will increase gas mileage by 25% and reduce pollution. Originally, the truck and engine were not set up as separate assets. Management confidently estimates that the cost of the engine is one-third of the overall cost of the truck. The truck's original cost was $420,000 and it is 40% depreciated.
Prepare the necessary journal entries to record the transaction. Provide a short justification for your chosen treatment.

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Definitions:

Deindividuation

A psychological state where an individual loses their sense of individual identity and engages in unsocialized or antisocial behaviors, often due to being in a large group.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, which can influence various psychological states and behaviors.

Ingroup Bias

The tendency to favor one's own group, including its members or interests, over those of outsiders or competing groups.

Social Loafing

The phenomenon where individuals exert less effort when working collectively in a group than when working individually.