Christiansted Incorporated purchased equipment in 2021 at a cost of $800,000. The equipment was expected to produce 350,0000 units over the next six years and have a residual value of $100,000. The equipment was sold for $255,750 part way through 2023. Actual production in each year is presented below. Christiansted uses units-of-production depreciation, and no depreciation has been recorded through the disposal date.

Assume equipment is sold for: Assume equipment is sold for: $255,750 Required: 1. Compute the depreciation per unit. 2. Compute the book value of the equipment as of the date of the sale. \begin{tabular}{|} $2.00Q \\ \hline 275,000? \\ \hline \end{tabular} 3. Assume the equipment is sold for $255,750. Calculate the gain or loss on the sale. 4. Prepare the journal entry to record the sale. (Debits must be recorded before credits) \begin{tabular}{|l|c|c|} \hline \multicolumn{1}{|c|}{ General Journal } & Debit & Credit \\ \hline Cash & 255,750 & \\ \hline Accumulated depreciation & 525,000 & \\ \hline Loss on sale of equipment & & 19,250 \\ \hline & & \\ \hline \end{tabular} 5. Assume, instead, the equipment is sold for $286,000. Calculate the gain or loss on the sale. $11,000 Gain 6. Prepare the journal entry to record the sale in requirement 5 . Debits must be recorded before credits. \begin{tabular}{|l|c|c|} \hline General Journal & Debit & Credit \\ \hline Cash & 286,000 & \\ \hline Accumulated depreciation & 525,000 & \\ \hline Equipment & 800,000 & \\ \hline Gain on sale of equipm & & 11,000 \\ \hline \end{tabular}