Mercury Inc. purchased equipment in 2016 at a cost of $207,000. The equipment was expected to produce 570,000 units over the next five years and have a residual value of $36,000. The equipment was sold for $106,600 part way through 2018. Actual production in each year was: 2016 = 82,000 units, 2017 = 130,000 units, 2018 = 66,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date Required 1. Prepare the journal entry to record the sale. 2. Assuming that the equipment was sold for $138,600, prepare the journal entry to record the sale.