Mercury Incorporated purchased equipment in 2022 at a cost of $497,000. The equipment was expected to produce 580,000 units ver the next five years and have a residual value of $33,000. The equipment was sold for $253,600 part way through 2024. Actual roduction in each year was: 2022=83,000 units; 2023=133,000 units; 2024=67,000 units. Mercury uses units-of-production lepreciation, and all depreciation has been recorded through the disposal date. required: 1. Calculate the gain or loss on the sale. 2. Prepare the Joumal 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. Calculate the gain or loss on the sale. Note: Do not round intermediate calculations