Exercise 11-10 (Algo) Disposal of property, plant, and equipment (LO11-2] Mercury Inc. purchased equipment in 2019 at a cost of $313,000. The equipment was expected to produce 310,000 units over the next five years and have a residual value of $34,000. The equipment was sold for $167,900 part way through 2021. Actual production in each year was: 2019 = 44,000 units; 2020 = 70,000 units; 2021 = 35,000 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 $181,900, calculate the gain or loss on the sale. 4. Prepare the journal entry to record the sale in requirement 3