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:

Eye Contact

The act of looking directly into another person's eyes, which can communicate various messages and emotions in social interactions.

Communication Transparency

The open sharing of honest and complete information about the organization and workplace affairs.

Organizational Members

Individuals who are part of an organization and contribute to its culture, goals, and functions through their roles and activities.

Feedback

Information returned to a person or system about the results of an activity or process, used as a basis for improvement.