Mercury Incorporated purchased equipment in 2022 at a cost of $354,000. The equipment was expected to...

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Mercury Incorporated purchased equipment in 2022 at a cost of $354,000. The equipment was expected to produce 440,000 units over the next five years and have a residual value of $46,000. The equipment was sold for $203,100 part way through 2024. Actual production in each year was: 2022 = 61,000 units; 2023 = 97,000 units; 2024 = 49,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date. Required: 1. Calculate the gain or loss on the sale. 2. Prepare the journal entry to record the sale. 3. Assuming that the equipment was instead sold for $222,100, calculate the gain or loss on the sale. 4. Prepare the journal entry to record the sale in requirement 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the journal entry to record the sale in requirement 3. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. View transaction list Journal entry worksheet 1 Record the sale of equipment. A Mercury Incorporated purchased equipment in 2022 at a cost of $354,000. The equipment was expected to produce 440,000 units over the next five years and have a residual value of $46,000. The equipment was sold for $203,100 part way through 2024. Actual production in each year was: 2022 = 61,000 units; 2023 = 97,000 units; 2024 = 49,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date. Required: 1. Calculate the gain or loss on the sale. 2. Prepare the journal entry to record the sale. 3. Assuming that the equipment was instead sold for $222,100, calculate the gain or loss on the sale. 4. Prepare the journal entry to record the sale in requirement 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the journal entry to record the sale in requirement 3. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. View transaction list Journal entry worksheet 1 Record the sale of equipment. A

Answer rating: 100% (QA)

1 Calculate the gain or loss on the sale Gain or Loss Sale Price Book Value Book Value Cost Accumula... View the full answer