Sabel Co. purchased assembly equipment for $364,000 on January 1, 2018. Sabel's financial condition immediately prior to the purchase is shown in Required B.

The equipment is expected to have a useful life of 280,000 machine hours and a salvage value of $28,000. Actual machine-hour use was as follows:

2018	74,000
2019	79,000
2020	66,000
2021	44,000
2022	18,000

Required

1. Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation. (Do not round intermediate calculations.)

Years	Depreciation
2018
2019
2020
2021
2022

Assume that Sabel earns $238,000 of cash revenue during 2018. 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. The first event is recorded as an example. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net 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 sign.)

SABEL CO.

Horizontal Statements Model for 2018

Balance Sheet

Income Statement

Assets

Stockholders Equity

Revenue

Expense

=

Net Income

Cash Flow

Event

Cash

+

Book Value of Equipement

=

Common Stock

+

Retained Earnings

=

Balance

880,000

+

=

880,000

+

=

Equipment

+

=

+

=

Revenue

+

=

+

=

Depreciation

+

=

+

=

Balance

+

=

+

=

Assume that Sabel sold the equipment at the end of the fifth year for $29,400. Calculate the amount of gain or loss on the sale.