Exercise 11-10 (Algo) Disposal of property, plant, and equipment [LO11-2] Mercury incorporated purchased equipment in 2022 at a cost of $212,000. The equipment was expected to produce 560,000 units over the next five years and have a residual value of $44,000, The equipment was sold for $112,500 part way through 2024 . Actual production in each year was: 2022=78,000 units, 2023=124,000 units; 2024=63,000 units. Mercury uses units-of-pioduction depreciotion, and al depreciation has been recorded through the disposal date: Required: 1. Calculate the gain or loss on the sole 2. Prepare the journat entry to record the sale: 3. Assuming that the equipment was instead sold for $145,500, 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. Calculate the gain or loss on the sale. Note: Do not round intermediste calculations