Exercise 11-10 (Algo) Disposal of property, plant, and equipment [LO11-2] Mercury Inc. purchased equipment in...
50.1K
Verified Solution
Link Copied!
Question
Finance
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.
Required 1
Required 2
Required 3
Required 4
Assuming that the equipment was instead sold for $179,000, calculate the gain or loss on the sale. (Do not round intermediate calculations.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
