Mercury Inc. purchased equipment in 2019 at a cost of $249,000. The equipment was expected to produce 510,000 units over the next five years and have a residual value of $45,000. The equipment was sold for $134,800 part way through 2021. Actual production in each year was: 2019 = 71,000 units; 2020 = 114,000 units; 2021 = 58,000 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 $163,800, calculate the gain or loss on the sale. 4. Prepare the journal entry to record the sale in requirement 3