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4 1.25 points eBook Print Mercury Incorporated purchased equipment in 2022 at a cost of $157,000. The equipment was expected to produce 300,000 units over the next five years and have a residual value of $37,000. The equipment was sold for $81,800 part way through 2024. Actual production in each year was: 2022 = 42,000 units; 2023 = 67,000 units; 2024 = 34,000 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 $102,800, 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. References Required 1 Required 2 Required 3 Required 4 Calculate the gain or loss on the sale. Note: Do not round intermediate calculations. Required 1 Required 2 >

4 1.25 points eBook Print Mercury Incorporated purchased equipment in 2022 at a cost of $157,000. The equipment was expected to produce 300,000 units over the next five years and have a residual value of $37,000. The equipment was sold for $81,800 part way through 2024. Actual production in each year was: 2022 = 42,000 units; 2023 = 67,000 units; 2024 = 34,000 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 $102,800, 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. References Required 1 Required 2 Required 3 Required 4 Calculate the gain or loss on the sale. Note: Do not round intermediate calculations. Required 1 Required 2 >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4 1.25 points eBook Print Mercury Incorporated purchased equipment in 2022 at a cost of $157,000. The equipment was expected to produce 300,000 units over the next five years and have a residual value of $37,000. The equipment was sold for $81,800 part way through 2024. Actual production in each year was: 2022 = 42,000 units; 2023 = 67,000 units; 2024 = 34,000 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 $102,800, 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. References Required 1 Required 2 Required 3 Required 4 Calculate the gain or loss on the sale. Note: Do not round intermediate calculations. Required 1 Required 2 >
Transcribed Image Text:4 1.25 points eBook Print Mercury Incorporated purchased equipment in 2022 at a cost of $157,000. The equipment was expected to produce 300,000 units over the next five years and have a residual value of $37,000. The equipment was sold for $81,800 part way through 2024. Actual production in each year was: 2022 = 42,000 units; 2023 = 67,000 units; 2024 = 34,000 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 $102,800, 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. References Required 1 Required 2 Required 3 Required 4 Calculate the gain or loss on the sale. Note: Do not round intermediate calculations. Required 1 Required 2 >
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