Question: 10points eBookReferences Check my workCheck My Work button is now enabled Item 7 Mercury Incorporated purchased equipment in 2022 at a cost of $212,000. The

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Mercury Incorporated purchased equipment in 2022 at a cost of $212,000. The equipment was expected to produce 560,000 units over the next five years and have a residual value of $44,000. The equipment was sold for $112,500 part way through 2024. Actual production in each year was: 2022 = 78,000 units 2023 = 124,000 units 2024 = 63,000 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 $145,500, calculate the gain or loss on the sale.
Prepare the journal entry to record the sale in requirement 3.

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