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Exercise 1 1 - 1 0 ( Algo ) Disposal of property, plant, and equipment [ L 0 1 1 - 2 ] Mercury Incorporated
Exercise Algo Disposal of property, plant, and equipment L
Mercury Incorporated purchased equipment in at a cost of $ The equipment was expected to produce units
over the next five years and have a residual value of $ The equipment was sold for $ part way through Actual
production in each year was: units; units; units. Mercury uses unitsofproduction
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 $ calculate the gain or loss on the sale.
Prepare the journal entry to record the sale in requirement
Complete this question by entering your answers in the tabs below.
Assuming that the equipment was instead sold for $ 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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