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Problem 8-29A (Algo) Computing and recording units-of-production depreciation LO 8-4, 8-5 Sabel Company purchased assembly equipment for $725,000 on January 1, Year 1. Sabel's financial

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Problem 8-29A (Algo) Computing and recording units-of-production depreciation LO 8-4, 8-5 Sabel Company purchased assembly equipment for $725,000 on January 1, Year 1. Sabel's financial condition immediately prior to the purchase is shown in Required B. The equipment is expected to have a useful life of 250,000 machine hours and a salvage value of $25,000. Actual machine-hour use was as follows. Required a. Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation. b. Assume that Sabel earns $235,000 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 a horizontal statements model. c. Assume that Sabel sold the equipment at the end of the fifth year for $26,100. Record the general journal entry for the sale. a. Compute the depreciation for each of the five yoars, assuming the use of units-of-production depreciation. b. Assume that Sabel earns $235.000 of cash revenue during Year 1 . Record the purchase of the equipment anc the recognition of the revenue and the depreciation expense for the first year in a horizontal statements model c. Assume that Sabel sold the equipment at the end of the fifh year for $26,100, fecord the general journal entry for the saie. Complete this question by entering your answers in the tabs below. Assume that Sabel earns 1235,000 of cash revenue during Vear 1. Record the purchase of the equipment and the recognition of the revenue and the depreciation expensi year in a horizontal statements model. (In the Statemient of Cash Flows column, use the initials oA to designate operating activity, tA for investing activity, FA for financin het change, or leave blonk for not affected. Leave blank to indicath that an element is not affected. br the event. Enter any decreases to account balances and casih outilo vign

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