Exercise 11-10 (Algo) Disposol of property, plant, and equipment [LO11-2] Mercury incorporated purchased equipment in...
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Exercise 11-10 (Algo) Disposol of property, plant, and equipment [LO11-2] 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 tesidual value of $44,000. The equipment was sold for $112,500 part way through 2024 Actual production in each year was: 2022=78,000 unts, 2023=124,000 units, 2024=63,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal dote. Required: 1. Calculate the gain or loss on the sale 2. Prepare, the joumal entry to record the sale 3. Assuming that the equipment was instead sold for $145,500, calculate the gain or loss on the sole 4. Prepare the journat entry to record the sale in requirement 3 . Complete this question by entering your answers in the tabs below. Calculate the gain or loss on the sale. Note: Do not round intermediate calculations
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