Mercury Incorporated purchased equipment in $2022$ at a cost of $$383,000.$ The equipment was expected to produce $490,000$ units over the next five years and have a residual value of $$40,000.$ The equipment was sold for $$199,100$ part way through $2024.$ Actual production in each year was: $2022=70,000$ units$2023=111,000$ units$2024=56,000$ 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 $$235,100,$ calculate the gain or loss on the sale.

Prepare the journal entry to record the sale in requirement $3.$Jackpot Mining Company operates a copper mine in central Montana. The company paid $$1,100,000$ in $2024$ for the mining site and spent an additional $$620,000$ to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs:

Note: Use tables, Excel, or a financlal caleulator. $($FV of $$1,$ PV of $$1.$ FVA of $$1.$ PVA of $$1.$ FVAD of $$1$ and PVAD of $$1)$

$\backslash$table$[[,$Cash Outflow,Probability$],[1,$$$32,9,20\%$