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Exercise 1 1 - 1 0 ( Algo ) Disposal of property, plant, and equipment [ L 0 1 1 - 2 ] Mercury Incorporated

Exercise 11-10(Algo) Disposal of property, plant, and equipment [L011-2]
Mercury Incorporated purchased equipment in 2022 at a cost of $143,000. The equipment was expected to produce 370,000 units
over the next five years and have a residual value of $32,000. The equipment was sold for $71,900 part way through 2024. Actual
production in each year was: 2022=52,000 units; 2023=83,000 units; 2024=42,000 units. Mercury uses units-of-production
depreciation, and all depreciation has been recorded through the disposal date.
Required:
Calculate the gain or loss on the sale.
Prepare the journal entry to record the sale.
Assuming that the equipment was instead sold for $108,900, calculate the gain or loss on the sale.
Prepare the journal entry to record the sale in requirement 3.
Complete this question by entering your answers in the tabs below.
Assuming that the equipment was instead sold for $108,900, calculate the gain or loss on the sale.
Note: Do not round intermediate calculations.
Gain on sale of equipment
Loss on sale of equipment
No Gain or Loss on sale of equipment
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