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Mercury Inc. purchased equipment in 2019 at a cost of $354,000. The equipment was expected to produce 440,000 units over the next five years and

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Mercury Inc. purchased equipment in 2019 at a cost of $354,000. The equipment was expected to produce 440,000 units over the next five years and have a residual value of $46,000. The equipment was sold for $203,100 part way through 2021. Actual production In each year was: 2019 = 61,000 units; 2020 = 97,000 units: 2021 - 49,000 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 $222,100, calculate the gain or loss on the sale. 4. Prepare the journal entry to record the sale in requirement 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Calculate the gain or loss on the sale. (Do not round intermediate calculations.) Recen Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 1 Record the sale Note: Enter debits before credits. Event General Journal Dobit Credit 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming that the equipment was instead sold for $222,100, calculate the gain or loss on the sale. (Do not round Intermediate calculations.) Complete this question by entering your answers in the tabs below. Required! Required 2 Required 3 Required 4 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.) View transaction list Journal entry worksheet 1 > Record the sale of equipment Note: Enter debits before credits Event General Journal Debit Credit 1

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