Mercury Incorporated purchased equipment in 2022 at a cost of $497,000. The equipment was expected to produce 580,000 units over the next five years and have a residual value of $33,000. The equipment was sold for $253,600 part way through 2024 . Actual production in each year was: 2022=83,000 units; 2023=133,000 units; 2024=67,000 units. Mercury uses units-of-production depreciation, and ali 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 $280,000, calculate the gain or loss on the sale. 4. Prepare the joumal 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. Mercury Incorporated purchased equipment in 2022 at a cost of $497,000. The equipment was expected to produce 580,000 units over the next five years and have a residual value of $33,000. The equipment was sold for $253,600 part way through 2024. Actual production in each year was: 2022=83,000 units; 2023=133,000 units; 2024=67,000 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 $280,000, 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. Assuming that the equipment was instead sold for $280,000, calculate the gain or lass on the sale. Note: bo not round intermediate calculations. Mercury Incorporated purchased equipment in 2022 at a cost of $497,000. The equipment was expected to produce 580,000 units over the next five years and have o residuai value of $33,000. The equipment was sold for $253,600 part way through 2024. Actual production in each year was: 2022=83,000 units; 2023=133,000 units; 2024=67,000 units. Mercury uses units-of-production Jepreciation, 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 $280,000, 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. Prepare the joumal entry to record the saie in requirement 3. Note: if no entry is required for a transactionvevent, select "No journal entry required" in the first account field. Do not round intermediate calculations. Journal entry worksheet Mercury incorporated purchased equipment in 2022 at a cost of $497,000. The equipment was expected to produce 580,000 units over the next five years and have a residual value of $33,000. The equipment was sold for $253,600 part way through 2024 . Actual production in each year was: 2022=83,000 units; 2023=133,000 units; 2024=67,000 units. Mercury uses units-of-production depreciation, and al 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 sole. 3. Assuming that the equipment was instead sold for $280,000, 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. Prepare the foumal entry to record the sale. Note: if no entry is reculred for a transactionvevent, select "No journal entry required" in the first account feld. Do not round intermediate calculations. Journal entry worksheet
