Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need help with part b I cant finish the rest Sabel Co. purchased assembly equipment for $851,000 on January 1, Year 1. The equipment is
need help with part b I cant finish the rest
Sabel Co. purchased assembly equipment for $851,000 on January 1, Year 1. The equipment is expected to have a useful life of 370,000 miles and a salvage value of $37,000. Actual mileage was as follows: 22 Year 1 103,000 Year 2 98.000 Year 3 89,000 Year 4 55,000 Year 5 27,000 5 Required a. Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation b. Assume that Sabel earns $247000 of cash revenue during Year 1. Record the purchase of the equipment and the recognition of the revenue and the depreciation expense for the first year in the following financial statements model C. Assume that Sabel sold the equipment at the end of the fifth year for $39,300 Calculate the amount of gain or loss on the sale. Required A Required B Required Assume that Sabel earns $247,000 of cash revenue during Year 1. Record the purchase of the equipment and the recognition of the revenue and year in the following financial statements model. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing acti change in cash and leave the cell blank to indicate the element is not affected by the event. Enter any decreases to account balances with a minus Net Income Cash Flow Event SABEL CO. Horizontal Statements Model for Year 1 Balance Sheet Income Statement Assets Stockholders' Equity Revenue Expense Book Value of Cash Common Retained Equipment Stock Earnings 970,000 - 970,000 (851.000) 851,000 247,000 247,000 (226,600) 366,000 624 400 970,000 247.000 0 0 (851.000) IA Balance Equipment Revenue Depreciation Balance 0 (851.000) Required A Required C > Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started