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Sabel Co. purchased assembly equipment for $836,000 on January 1, Year 1. The equipment is expected to have a useful life of 380,000 miles and

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Sabel Co. purchased assembly equipment for $836,000 on January 1, Year 1. The equipment is expected to have a useful life of 380,000 miles and a salvage value of $38,000. Actual mileage was as follows: Year 1 104,000 Year 299,000 Year 3 90,000 Year 4 64,000 Year 5 28,000 Required a. Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation. b. Assume that Sepel earns $248,000 of cash revenue during Year 1. Record the purchase of the equipment and the recognition of th 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 $40,400. Calculate the amount of gain or loss on the sale. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation. (Do not round intermediate calculations.) Years Depreciation Year 1 Year 2 Year 3 Drau Next > Saved Help Complete this question by entering your answers in the tabs below. Required A Required B Required Assume that Sabel earns $248,000 of cash revenue during Year 1. Record the purchase of the equipment and the recognition of the revenue ar year in the following financial statements model. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing 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 mi SABEL CO. Horizontal Statements Model for Year 1 Income Statement Expense Revenue Net Income Cash Flow Balance Sheet Assets Stockholders' Equity Book Value of Common Retained Cash Equipment Stock Earnings 980,000+ 980,000+ Event alance + quipment evenue epreciation + alance 980,000 + 0 980,000 + 0 = Year 3 Year 4 Year 5 90,000 64,000 28,000 Required a. Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation. b. Assume that Sabel earns $248,00b of cash revenue during Year 1. Record the purchase of the equipment and the recog 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 $40,400. Calculate the amount of gain or loss on Complete this question by entering your answers in the tabs below. Required A Required B Required C Assume that Sabel sold the equipment at the end of the fifth year for $40,400. Calculate the amount of gain or loss on the sale.

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