Exercise $11-10($Algo$)$ Disposal of property, plant, and equipment $[$LO$11-2]$

Mercury Incorporated purchased equipment in $2022$ at a cost of $$143,000.$ The equipment was expected to produce $370,000$ units

over the next five years and have a residual value of $$32,000.$ The equipment was sold for $$71,900$ part way through $2024.$ Actual

production in each year was: $2022=52,000$ units; $2023=83,000$ units; $2024=42,000$ 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 $$108,900,$ calculate the gain or loss on the sale.

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

Answer is not complete.

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Required $2$

Calculate the gain or loss on the sale.

Note: Do not round intermediate calculations.