Mercury lic purchased equipment in $2019$ at a cost of $$294,000.$ The equipment was expected to prodiuce $530,000$ units bver the next five years and have a residual value of $$29,000.$ The equipment was soid for $$150000$ part way through $2021.$ Actua production in each year was. $2019-76,000$ units, $2020=121,000$ units $2021=61,000$ units. Mercury uses units$-$of$-$production depreciation, and all depreciation has been recorded through the disposai date.

Required:

Caliculate the gain ar loss on the sale

$2$ Prepare the joumal entry to record the sale.

Assuming that the equipment was instead sold for $$179,000,$ calculate the gain or loss on the sale.

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