Mercury Incorporated purchased equipment in 2022 at a cost of $169,000. The equipment was expected to produce 300,000 units over the next five years and have a residual value of $49,000. The equipment was sold for $103,800 part way through 2024. Actual production in each year was: 2022 = 42,000 units 2023 = 67,000 units 2024 = 34,000 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 $114,800, calculate the gain or loss on the sale. Prepare the journal entry to record the sale in requirement 3.