Mercury Inc. purchased equipment in 2016 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 2018. Actual production in each year was: 2016 = 54,000 units? 2017 = 86,000 units? 2018 = 43,000 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 $84,400, prepare the journal entry to record the sale.