Exercise 11-10 (Algo) Disposal of property, plant, and equipment [LO11-2] Mercury Inc. purchased equipment in 2019 at a cost of $340,000. The equipment was expected to produce 440,000 units over the next five years and have a residual value of $32,000. The equipment was sold for $170,900 part way through 2021. Actual production in each year was: 2019 = 63,000 units; 2020 = 100,000 units: 2021 - 50,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date. Required: 1. Calculate the gain or loss on the sale. 2. Prepare the journal entry to record the sale. 3. Assuming that the equipment was instead sold for $201.900, 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. Required 1 Required 2 Required 3 Required 4 Prepare the journal entry to record the sale in requirement 3. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations.) View transaction ist Event View journal entry worksheet General Journal Cash Accumulated depreciation equipment Debit Credit 1 1 149.100 Exercise 11-10 (Algo) Disposal of property, plant, and equipment (L011-2) Mercury Inc. purchased equipment in 2019 at a cost of $340,000. The equipment was expected to produce 440,000 units over the next five years and have a residual value of $32,000. The equipment was sold for $170,900 part way through 2021. Actual production In each year was: 2019 - 63,000 units; 2020 - 100.000 units: 2021 = 50,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date. Required: 1. Calculate the gain or loss on the sale. 2. Prepare the journal entry to record the sale, 3. Assuming that the equipment was instead sold for $201,900, 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. Required 1 Required 2 Required Required 4 Calculate the gain or loss on the sale. (Do not round Intermediate calculations) Lots on sale of equipment Required 2 > otv W 6T Check my work mode : This shows what is correct or Incorrect for the work you have completed so far. It does not indicate complete Mercury Inc. purchased equipment in 2019 at a cost of $340,000. The equipment was expected to produce 440,000 units over the next five years and have a residual value of $32,000. The equipment was sold for $170,900 part way through 2021. Actual production in each year was: 2019-63,000 units: 2020 - 100,000 units; 2021 - 50,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date. Required: 1. Calculate the gain or loss on the sale. 2. Prepare the journal entry to record the sale. 3. Assuming that the equipment was instead sold for $201900, calculate the gain or loss on the sale 4. Prepare the journal entry to record the sale in requirement 3. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming that the equipment was instead sold for $201,900, calculate the gain or loss on the sale. (Do not round intermediate calculations.) Gain on sale of equipment Required 2 Required 4 > Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not Indicate . OILUILE Ure your are. 2. Prepare the journal entry to record the sale. 3. Assuming that the equipment was instead sold for $201.900, calculate the gain or loss on the sale. 4. Prepare the journal entry to record the sale in requirement 3. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the journal entry to record the sale in requirement 3. (If no entry is required for a transaction/event, select "No Journal entry required in the first account field. Do not round intermediate calculations.) No Event General Journal Debit Credit 1 1 Cash Accumulated depreciation equipment 149,100 Gain on sale of equipment Equipment 340,000 Required 3 Next
