Mercury Inc. purchased equipment in $2019$ at a cost of $$400,000.$ The equipment was expected to produce $700,000$ units over the

next five years and have a residual value of $$50,000.$ The equipment was sold for $$210,000$ part way through $2021.$ Actual production

in each year was: $2019=100,000$ units; $2020=160,000$ units; $2021=80,000$ units. Mercury uses units$-$of$-$production depreciation, and

all depreciation has been recorded through the disposal date.

Required:

Calculate the gain or loss on the sale.

Prepare the journal entry to record the sale.

Assuming that the equipment was instead sold for $$245,000,$ calculate the gain or loss on the sale.

Prepare the journal entry to record the sale in requirement $3.$

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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.$)$Mercury Inc. purchased equipment in $2019$ at a cost of $$400,000.$ The equipment was expected to produce $700,000$ units over the next five years and have a residual value of $$50,000.$ The equipment was sold for $$210,000$ part way through $2021.$ Actual production in each year was: $2019=100,000$ units$2020=160,000$ units$2021=80,000$ 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 $$245,000,$ calculate the gain or loss on the sale.

$4.$ Prepare the journal entry to record the sale in requirement $3.$