Mercury Inc. purchased equipment in 2019 at a cost of $138,000. The equipment was expected to produce 500,000 units over the next five years and have a residual value of $38,000. The equipment was sold for $78,200 part way through 2021. Actual production in each year was: 2019 = 70,000 units 2020 = 112,000 units 2021 = 57,000 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 $105,200, calculate the gain or loss on the sale. 4. Prepare the journal entry to record the sale in requirement 3.