Exercise 11-10 Disposal of property, plant, and equipment [L011-2] Mercury Inc. purchased equipment in 2016 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 2018. Actual production in each year was: 2016 78,000 units, 2017 = 124,000 units, 2018 = 63,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date. Required 1. Prepare the journal entry to record the sale. 2. Assuming that the equipment was sold for $145,500, prepare the journal entry to record the sale