Exercise 11-10 (Algo) Disposal of property, plant, and equipment [LO11-2] Mercury Inc. purchased equipment in 2019 at a

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Exercise 11-10 (Algo) Disposal of property, plant, and
equipment [LO11-2]
Mercury Inc. purchased equipment in 2019 at a cost of $294,000.
The equipment was expected to produce 530,000 units over the next
five years and have a residual value of $29,000. The equipment was
sold for $150,000 part way through 2021. Actual 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 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 $179,000, 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 $179,000,
calculate the gain or loss on the sale. (Do not round
intermediate calculations.)