Required Information Exercise 11-2 (Static) Depreciation methods [LO11-2] [The following information applies to the questions displayed below.] On January 1, 2021, the Allegheny Corporation purchased equipment for $115.000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 220.000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Exercise 11-2 (Static) Part 1 1. Straight-line. Straight-Line Choose Numerator: Choose Denominator: = Annual Depreciation Expense = Depreciation Expense Formula Cost minus residual Estimated Useful Life (years) 0 Amounts Depreciation Expense 2021 2022 Exercise 11-10 (Static) Disposal of property, plant, and equipment [LO11-2] Mercury Inc. purchased equipment in 2019 at a cost of $400,000. The equipment was expected to produce 700,000 units over the next five years and have a residual value of $50.000. The equipment was sold for $210,000 part way through 2021. Actual production in each year was: 2019 = 100.000 units: 2020 = 160.000 units, 2021 = 80,000 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 $245,000. 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. Required 1 Required 2 Required 3 Required 4 Calculate the gain or loss on the sale. Do not round intermediate calculations.) Required 2 > Required 1 Required 2 Required 3 Required 4 Prepare the journal entry to record the sale. (If no entry is required for a transaction/event, sel- account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet Prepare the journal entry to record the sale in requirement 3. (If no entry is required for a transa required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet Record the sale of equipment. Note: Entes before. Event General Journal Debit Credit