On April 22, 2023, Pharoah Enterprises purchased equipment for $134,860. The company expects to use the equipment for 11,800 working hours during its four-year life and that it will have a residual value of $14,500. Pharoah has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 2,000 hours in 2023;2,500 hours in 2024;3,900 hours in 2025 ; 2,500 hours in 2026 ; and 1,100 hours in 2027