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 $$209,400$ part way through $2024.$ Actual production in each year was: $2022=70,000$ units$2023=112,000$ 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 $$230,400,$ calculate the gain or loss on the sale.

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