Exercise 11-10 (Algo) Disposal of property, plant, and equipment [LO11-2] Mercury Incorporated purchased equipment in 2022 at a cost of $110,000. The equipment was expected to produce 380,000 units over the next five years and have a residual value of $34,000. The equipment was sold for $63,400 part way through 2024. Actual production in each year was: 2022 = 54,000 units; 2023 = 86,000 units: 2024 = 43,000 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 $84,400, calculate the gain or loss on the sale. 4. Prepare the journal entry to record the sale in requirement 3.