Mercury Incorporated purchased equipment in $2022$ 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 $2024.$ Actual production in each year was: $2022=61,000$ units; $2023=97,000$ units; $2024=49,000$ 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 $$222,100,$ calculate the gain or loss on the sale.

Prepare the journal entry to record the sale in requirement $3.$

Complete this question by entering your answers in the tabs below.

Calculate the gain or loss on the sale.

Note: Do not round intermediate calculations.