Exercise $11-10($Algo$)$ Disposal of property, plant, and equipment $[$L$011-2]$

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.

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.